Luxembourg, 9 November 2023 – Global Fashion Group S.A. (“GFG”), the leading online fashion and lifestyle destination in LATAM, SEA and ANZ, continues to strategically position itself for a return to growth, underpinned by ongoing efficiency measures and cost initiatives.

Q3 2023 Highlights 

(growth rates at constant currency)

  • Net Merchandise Value decrease of 19.4% (Q3/22: +1.6%)
  • Revenue decrease of 25.0% (Q3/22: +6.2%)
  • Marketplace NMV achieved 38.8% share of total NMV (Q3/22: 31.4%)
  • Gross Margin 42.1% (Q3/22: 40.8%) and Adj. EBITDA Margin (9.7)% (Q3/22: (6.0)%)
  • Active Customer decrease of 19.1%, Order Frequency decrease of 3.8% 
  • Pro-Forma Cash of €350.1m and Pro-Forma Net Cash of €158.0m1 

Christoph Barchewitz, CEO of GFG, said: “Despite prolonged headwinds across our markets and the sector impacting our Q3 results, we remain resolute in executing our strategy. This includes our transition to a robust platform business and emphasis on driving technology-enabled efficiency through reducing costs and complexity. We firmly believe that these actions will position GFG favourably for a brighter market environment ahead, which we are confident will materialise.”

Cost of living pressures escalated across GFG’s markets in H1 leading to further step downs in consumer spending and sentiment in Q3. As a result, topline figures were weaker than expected. In Q3 2023, GFG’s Net Merchandise Value (NMV) and Revenue were down 19.4% and 25.0% yoy respectively. Orders were down 26.0% and Active Customers by 19.1%. Average Order Value increased by 9.0% due to multiple factors including elevated inflation, lower items per order and mix effects. This partially offsets the direct impact of fewer orders on NMV. 

GFG is continuing to execute its investment plan in LATAM, with the strategy focused on future success in Brazil, Chile, and Colombia. Due to market challenges, the Group streamlined the LATAM business and decided to close operations in Argentina, which accounted for 4% of Group NMV and 3% of Revenue in H1 2023. NMV in the region declined 22.5% yoy in Q3. In SEA, Gross Margin increased 2.3ppt to 40.8% driven by the strong expansion of its Marketplace and Platform Services, despite a 17.3% yoy decline in NMV. In ANZ, NMV declined by 18.4% yoy reflecting the weak consumer sentiment in the region.

GFG delivered a Gross Margin of 42.1%, a 1.3ppt increase yoy, supported by increasing Marketplace, which reached 38.8% of NMV and Platform Services participation in line with the Group’s commitment to executing its platform strategy. Fixed cost deleverage due to lower volumes offset Gross Margin improvements resulting in an Adj. EBITDA margin of (9.7)%.

GFG is  delivering on its cost action plans through a disciplined marketing approach and ongoing efforts to streamline expenses across all cost lines. This includes continued prudent management of Inventory, which was reduced by 27% yoy, equivalent to a €60m reduction in constant currency. Whilst inflation and lower volumes continue to exert pressure, GFG remains confident that its ongoing cost action plans will position the business well for 2024.

GFG ended the quarter with a solid funding position, strengthened liquidity and financial flexibility after the convertible bond repurchases completed in August. The Group purchased €102 million of its outstanding convertible bonds due 2028 at a 27% discount. As of the end of Q3, GFG had €350.1m Pro-Forma cash and €158.0m Pro-Forma net cash (net of the Convertible Bond and other third-party debt).1

The Group’s expectations for the full year 2023 are detailed below. These are unchanged from the guidance issued on 26th October 2023. 

  • 16-18% decrease in NMV on a constant currency basis
  • c.€1.2-1.3 billion of NMV
  • c.€0.8 billion of Revenue
  • (9)-(7)% Adjusted EBITDA margin
  • c.€30 million in Capex



Q3 2022 Q3 2023 YTD 2022 YTD 2023
NMV (€M) 379.5 283.9 1,110.9 909.9
% Constant Currency Growth 1.6 (19.4)% 1.9% (14.3)%
Revenue (€M) 266.0 184.5 766.4 594.9
% Constant Currency Growth 6.2% (25.0)% 3.7% (18.5)%
GROSS PROFIT (€M) 108.6 77.7 323.3 247.0
% Margin of Revenue 40.8% 42.1% 42.2% 41.5%
EBIT (€M) (32.1) (34.6) (123.2) (108.5)
ADJUSTED EBITDA (€M) (16.0) (17.8) (36.7) (58.7)
% Margin of Revenue (6.0)% (9.7)% (4.8)% (9.9)%



Q2 2022 Q2 2023 YTD 2022 YTD 2023
Cash Capital Expenditure 12.1 7.6 33.4 21.6
Normalised Free Cash Flow** (53.8) (33.5) (139.7) (100.2)
Pro-forma Cash* 455.4 350.1 455.4 350.1
Pro-forma Net Cash* 157.1 158.0 157.1 158.0



Q3 2022 Q3 2023 YTD 2022 YTD 2023
ACTIVE CUSTOMERS (M) 11.4 9.2 11.4 9.2
% Growth (10.9)% (19.1)% (10.9)% (19.1)%
NUMBER OF ORDERS (M) 6.3 4.6 19.7 14.9
% Growth (14.1)% (26.0)% (12.6)% (24.4)%
ORDER FREQUENCY (x) 2.5 2.4 2.5 2.4
% Growth 0.4% (3.8)% 0.4% (3.8)%
AVERAGE ORDER VALUE (€) 60.6 61.4 56.5 61.3
% Constant Currency Growth 18.2% 9.0% 16.6% 13.4%



KPI and financial definitions, including alternative performance measures are available in the 2022 Annual Financial Report. 




Note: All Group figures are presented excluding Argentina except for pro-forma cash for which Argentina balances remain within the Group following the close of operations.
*Pro Forma cash is defined as cash & cash equivalents at the end of the period, short term duration bonds and securitised funds plus restricted cash and cash on deposits. Pro-forma net cash is pro-forma cash excluding third party borrowings and convertible bond debt.
**Normalised free cash flow is cash flow before FX retranslation, factoring cash flows, change in provisions, change in restricted cash, external funding, interest income, convertible bond coupon payments, exceptional items and fair value movement on investment funds.