Luxembourg, 30 April 2024 – Global Fashion Group S.A. (“GFG”), the leading online fashion and lifestyle destination in LATAM, SEA and ANZ, delivered margin gains against continued demand pressure in Q1 as a result of strong inventory management and platform business growth.

Q1 2024 Highlights 

(growth rates at constant currency)

  • Net Merchandise Value decrease of 16.5% (Q1/23: 7.1%)
  • Revenue decrease of 18.8% (Q1/23: 10.3%)
  • Marketplace NMV achieved 41% share of total NMV (Q1/23: 37%)
  • Gross Margin 44.0% (Q1/23: 41.0%) and Adj. EBITDA Margin (11.3)% (Q1/23: (12.1)%)
  • Active Customers decrease of 18.5%, Order Frequency decrease of 5.7%
  • Pro-Forma Cash of €320.8m and Pro-Forma Net Cash of €135.5m*

Christoph Barchewitz, CEO of GFG, said: “We are progressing our strategy with our platform transition and cost efficiency programme delivering improvements in profitability in Q1. Both Gross Margin and Adj. EBITDA margins expanded despite topline pressure. I am pleased by how we are not only implementing our strategy but also actively adapting it with new initiatives, demonstrating our commitment to navigating this market with creativity and differentiation.”

In Q1 2024, GFG delivered a Net Merchandise Value (“NMV”) of €239 million, representing a 16.5% decrease yoy as customer demand remained under pressure. Orders declined by 18.1% as a result of lower traffic and conversion rates. Average Order Value increased 1.9% in Q1 reflecting inflation impacts being mainly offset by lower items per order.

In LATAM, consumer spending weakness and intense competition led to an 18.1% decline yoy in NMV. The region is refining its strategy and further prioritising cost controls to address these market challenges. SEA achieved the most significant improvement in Gross Margin, increasing 5ppt to 44.6% despite an NMV decline of 15.0%. In ANZ, NMV decreased by 16.4%. This reflects ANZ’s relatively stronger year-on-year comparator as the consumer spending slowdown began later than in LATAM and SEA.

Each region delivered Gross Margin expansion in Q1 leading to the 3.0ppt increase yoy for the Group to 44.0%. The Gross Margin improvements were driven by better Retail margins from healthier inventory profiles at the start of the year and continued growth in Marketplace and Platform Services across all regions. Adjusted EBITDA margin increased more moderately by 0.8ppts to (11.3)%. This difference in margin gains was primarily due to strategic marketing investments completed as planned in Q1 to stimulate customer expansion. There was also some impact from fixed cost deleverage which means our cost action savings did not fully offset the decline in volumes.

GFG’s ongoing focus on cost efficiency generated a cash flow benefit by delivering a €16m or 13% reduction in its total cost base on a constant currency basis.** Improved payment terms negotiated in LATAM at the end of 2023 shifted some trade payables from Q4 to Q1, partially offsetting this benefit on a year-over-year comparison. On inventory, whilst investment increased in Q1 to prepare for the new season, overall inventory levels were down €52m or 29% year-over-year on a constant currency basis in line with the disciplined approach in place. Normalised Free Cash Flow for Q1 was €(60)m.

GFG closed Q1 with €320.8m Pro-Forma Cash and €135.5m Pro-Forma Net Cash.

GFG confirms its full year guidance for 2024. NMV is expected to decrease 5-15% on a constant currency basis, implying an NMV of €1.1-1.2 billion. Adjusted EBITDA is expected to be €(25)-(45) million. GFG will continue its focus on delivering profitability and cash flow improvements to progress building a financially sustainable business.


Q1 2023 Q1 2024
NMV (€M) 293.3 238.8
% Constant Currency Growth (7.1)% (16.5)%
Revenue (€M) 193.6 152.7
% Constant Currency Growth (10.3)% (18.8)%
GROSS PROFIT (€M) 79.4 67.2
% Margin of Revenue 41.0% 44.0%
EBIT (€M) (38.4) (31.7)
ADJUSTED EBITDA (€M) (23.4) (17.3)
% Margin of Revenue (12.1)% (11.3)%



Q1 2023 Q1 2024
Pro-Forma Cash* (€M) 488.5 320.8
Pro-Forma Net Cash* (€M) 189.9 135.5
Normalised Free Cash Flow*** (€M) (62.1) (60.3)
Cash Capital Expenditure (€M) 7.3 6.5



Q1 2023 Q1 2024
% Growth (17.2)% (18.5)%
% Growth (18.8)% (18.1)%
% Growth 0.7% (5.7)%
% Constant Currency Growth 14.4% 1.9%



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




*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.
**Total cost base includes expenses related to fulfilment, marketing, technology (including capital expenditure), admin (excluding share-based payments) and cash lease payments net of sublease income.
***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.