Luxembourg, 6 March 2024 – Global Fashion Group S.A. (“GFG”), the leading online fashion and lifestyle destination in LATAM, SEA and ANZ, demonstrated resilience in executing its strategic initiatives amidst market headwinds to achieve breakeven Adjusted EBITDA and a Gross Margin improvement in Q4.

Q4 2023 Highlights 

(growth rates at constant currency)

  • Net Merchandise Value decrease of 14.0% (Q4/22: (6.4)%)
  • Revenue decrease of 16.8% (Q4/22: (8.3)%)
  • Marketplace NMV achieved 38% share of total NMV (Q4/22: 34%)
  • Gross Margin 43.6% (Q4/22: 42.7%) and Adj. EBITDA Margin 0.2% (Q4/22: (1.9)%)
  • Active Customers decrease of 18.6%, Order Frequency decrease of 5.5%
  • Pro-Forma Cash of €396.5m and Pro-Forma Net Cash of €206.3m*

Christoph Barchewitz, CEO of GFG, said:“2023 was a year of significant change and adaptation for GFG, and I am proud of the team’s resilience and focus. We anticipated a challenging market and took action to navigate it by prioritising growing our Marketplace and Platform Services, reducing costs and advancing our strategic initiatives. As a result, we achieved Adjusted EBITDA breakeven in Q4, and maintained a healthy Gross Margin. We entered 2024 with a stronger foundation and a clear path forward to capitalise on our long-term potential.”

In Q4 2023, GFG delivered a Net Merchandise Value (“NMV”) of €369 million, representing a 14.0% yoy decrease due to the continued subdued consumer demand environment. Lower conversion rates led to a 19.5% yoy drop in Orders. However, GFG partially offset this volume impact by maintaining growth in Average Order Value, increasing 6.9% in Q4. Whilst moderating from prior quarters in 2023, this growth in order value was primarily driven by inflation, followed by category mix shifts.

In LATAM, NMV declined 12.4% yoy where the focus remained on strengthening the customer proposition in an inflationary and competitive market. SEA focused on its controllable levers and exceeded the Group’s longer term platform goals with Marketplace participation at 50% and Platform Services revenue share of 12% in FY 2023. This drove SEA’s Gross Margin increase of 1.1ppt to 43.3%, even with an NMV decline of 18.0% in Q4. ANZ also improved Gross Margin by 1.5ppt to reach 46.4% in Q4. This was achieved despite a challenging market still recovering from higher cost-of-living, which led to a 12.6% decline in NMV.

GFG’s focus on the expansion of its platform business and implementation of cost-saving actions culminated in year-on-year improvements for both Gross Margin and Adjusted EBITDA in Q4. Each region also delivered Gross Margin improvements which contributed to the Group’s Gross Margin increasing 0.9ppt yoy to 43.6%. Despite fixed cost deleverage from lower volumes, GFG achieved an Adjusted EBITDA margin of 0.2%, improving 2.1ppt yoy.

GFG successfully delivered on its cost-saving initiatives resulting in significant reductions to the Group’s total cost base encompassing fulfilment, marketing, technology and administrative costs and office and fulfilment centre leases. GFG also maintained its inventory and working capital discipline resulting in a 32% yoy inventory reduction on a constant currency basis and a €33m Normalised Free Cash Flow in Q4. GFG closed 2023 with a strong cash position of €396.5m Pro-Forma Cash and €206.3m Pro-Forma Net Cash.*

By taking decisive action throughout 2023, GFG has built a stronger foundation for 2024 with a leaner cost structure, healthy inventory and robust balance sheet. GFG is committed to its ongoing efficiency programme to ensure it is well positioned to navigate various scenarios and capitalise on future growth opportunities.

In 2024, GFG expects to deliver a 5-15% decrease in NMV on a constant currency basis, implying €1.1-1.2 billion in NMV. Adjusted EBITDA is expected to be €(25)-(45) million. This guidance reflects ongoing market challenges which have been observed in similar topline trends in the first two months of 2024 compared to Q4 2023.


Q4 2022 Q4 2023 FY 2022 FY 2023
NMV (€M) 442.8 369.3 1,553.6 1,279.3
% Constant Currency Growth (6.4)% (14.0)% (0.7)% (14.2)%
Revenue (€M) 302.8 243.1 1,069.2 838.0
% Constant Currency Growth (8.3)% (16.8)% 0.0% (18.0)%
GROSS PROFIT (€M) 129.4 105.9 452.7 352.9
% Margin of Revenue 42.7% 43.6% 42.3% 42.1%
EBIT (€M) (22.4) (70.0) (147.3) (178.5)
ADJUSTED EBITDA (€M) (5.7) 0.5 (42.3) (58.3)
% Margin of Revenue (1.9)% 0.2% (4.0)% (6.9)%



Q4 2022 Q4 2023 FY 2022 FY 2023
Pro-Forma Cash* 561.4 396.5 561.4 396.5
Pro-Forma Net Cash* 264.5 206.3 264.5 206.3
Normalised Free Cash Flow** 27.2 32.6 (113.3) (67.7)
Cash Capital Expenditure 9.1 6.9 42.5 28.5



Q4 2022 Q4 2023 FY 2022 FY 2023
ACTIVE CUSTOMERS (M) 10.8 8.8 10.8 8.8
% Growth (16.0)% (18.6)% (16.0)% (18.6)%
NUMBER OF ORDERS (M) 7.4 5.9 27.0 20.8
% Growth (17.1)% (19.5)% (13.9)% (23.1)%
ORDER FREQUENCY (x) 2.5 2.4 2.5 2.4
% Growth 2.5% (5.5)% 2.5% (5.5)%
AVERAGE ORDER VALUE (€) 59.9 62.1 57.5 61.5
% Constant Currency Growth 12.8% 6.9% 15.4% 11.6%



KPI and financial definitions, including alternative performance measures are available in the 2023 Annual Financial Report. 




Note: All Group figures are presented excluding Argentina except for Pro-Forma cash for which Argentina balances remained 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 (“NFCF”) represents operating cash flows excluding discontinued operations, exceptional items, changes in factoring principal, interest and tax on investment income and convertible bond interest.