Luxembourg, 5 March 2025 – Global Fashion Group S.A. (“GFG” or the “Group”), the leading online fashion and lifestyle destination in LATAM, SEA and ANZ, continued its steady quarterly improvement in topline trends, Gross Margin and Adj. EBITDA Margin into Q4.
Q4 2024 Highlights
(growth rates at constant currency)
- Net Merchandise Value decrease of 0.3% (Q4/23: (14.0)%)
- Revenue decrease of 1.2% (Q4/23: (16.8)%)
- Marketplace NMV achieved 38% share of total NMV (Q4/23: 38%)
- Gross Margin 45.6% (Q4/23: 43.6%) and Adj. EBITDA Margin 3.8% (Q4/23: 0.2%)
- Active Customers decrease of 9.2%, Order Frequency decrease of 3.3%
- Pro-Forma Cash of €222m and Pro-Forma Net Cash of €164m*
Christoph Barchewitz, CEO of GFG, said: “In 2024, we made significant strides to position GFG for long-term success and sustainable future growth. Our focus on customer engagement and assortment relevancy helped us attract customers back to our platforms and drove a gradual improvement in topline performance. By Q4, we stabilised NMV trends in our largest markets with LATAM and ANZ returning to growth. Notably, we achieved this whilst increasing both Gross Margin and Adjusted EBITDA Margin significantly. We are proud of the tangible progress achieved in 2024 and entered 2025 committed to building on this momentum to continue our clear trajectory toward our financial ambitions of positive Adjusted EBITDA and breakeven Normalised Free Cash Flow.”
In Q4 2024, GFG’s key topline metrics all declined at their slowest rate of the year. GFG generated €354 million of Net Merchandise Value (“NMV”), representing a 0.3% decrease year-on-year (“yoy”) on a constant currency basis. Active Customers and Orders decreased by 9.2% and 3.7% yoy, respectively. In the second half of the year, the ratio of new and reactivated customers over churned improved, driven by LATAM and ANZ’s near-record Black Friday results.
In LATAM, Q4 NMV increased 2.4% yoy, reflecting the successful execution of the region’s investment plan over the last two years. Due to post-COVID challenges and competitive pressures, the Group decided to close operations in Chile in Q1 2025, which accounted for 4% of Group NMV and 3% of Revenue in FY 2024. In SEA, Q4 NMV declined 20.3% yoy as competition remained intense. The region also struggled to offset sufficient cost to mitigate deleverage from reducing volumes. SEA improved Gross Margin throughout 2024 as a result of increased Marketplace participation and the expansion of Platform Services. Addressing SEA’s decline is a top priority for GFG in 2025. In ANZ, Q4 NMV increased 9.4% yoy and delivered a very healthy Gross Margin of 48.8%. ANZ’s performance was a result of several initiatives including the ‘Got You Looking’ masterbrand reset, integration of SEA’s operations & warehouse management system and investment in AI.
GFG achieved a record Gross Margin of 45.6% in Q4, increasing by 2.0ppt yoy. This improvement was supported by a healthy inventory profile as aged inventory levels reduced to 14% by the end of December, leading to stronger Retail Margins and less discounting. Margin expansion coupled with cost efficiencies resulted in an improved Adj. EBITDA Margin of 3.8% in Q4, with every region profitable in the quarter.
For the full year 2024, GFG delivered another year of strong cost initiative execution resulting in a total cost base reduction of €56 million or 9% yoy (constant currency).** Going forward, the Group will maintain its cost efficiency programmes whilst being prepared for incremental increases in variable fulfilment and marketing costs when demand returns. GFG reduced inventory levels by 10% yoy on a constant currency basis, and will continue to monitor inventory carefully throughout the year, ensuring the Group is well-positioned to meet demand.
Following a €38 million improvement in Adj. EBITDA and strong working capital management, GFG’s Normalised Free Cash Flow (“NFCF”) improved by €23 million to an outflow of €45 million for the full-year.*** From a regional view excluding central costs, ANZ achieved positive NFCF, SEA was breakeven and LATAM was negative although has continued to improve. GFG closed 2024 with a strong cash position of €222m Pro-Forma Cash and €164m Pro-Forma Net Cash.*
GFG entered 2025 well-positioned to build on the momentum in ANZ and LATAM by nurturing the positive Q4 customer and NMV growth trends. Whilst SEA has not yet experienced a similar topline turnaround, the Group is confident in the strategic initiatives in place for all regions to contribute to GFG’s trajectory toward achieving its longer term financial ambitions.
In 2025, GFG expects to deliver yoy NMV in a range of (5)-5% on a constant currency basis, implying €1.0-1.1 billion of NMV. The Group’s primary objective for 2025 is to reach Adj. EBITDA breakeven, despite the difficulty in predicting yoy NMV due to external factors. This guidance reflects GFG’s ongoing focus on prioritising profit and cash flow over topline growth, whilst still expecting improved NMV performance compared to 2024. This improvement is based on positive topline trends observed in Q4 2024 and the first two months of 2025.
KEY FINANCIAL METRICS
| Q4 2023 | Q4 2024 | FY 2023 | FY 2024 | |
|---|---|---|---|---|
| NMV (€M) | 369.3 | 354.3 | 1,279.3 | 1,142.2 |
| % Constant Currency Growth | (14.0)% | (0.3)% | (14.2)% | (7.8)% |
| Revenue (€M) | 243.1 | 232.3 | 838.0 | 743.5 |
| % Constant Currency Growth | (16.8)% | (1.2)% | (18.0)% | (8.6)% |
| GROSS PROFIT (€M) | 105.9 | 105.9 | 352.9 | 333.8 |
| % Margin of Revenue | 43.6% | 45.6% | 42.1% | 44.9% |
| EBIT (€M) | (70.0) | (7.5) | (178.5) | (82.1) |
| ADJUSTED EBITDA (€M) | 0.5 | 8.8 | (58.3) | (20.5) |
| % Margin of Revenue | 0.2% | 3.8% | (6.9)% | (2.8)% |
KEY CASH METRICS
| Q4 2023 | Q4 2024 | FY 2023 | FY 2024 | |
|---|---|---|---|---|
| Pro-Forma Cash* | 396.5 | 222.4 | 396.5 | 222.4 |
| Pro-Forma Net Cash* | 206.3 | 164.1 | 206.3 | 164.1 |
| Normalised Free Cash Flow** | 32.6 | 45.3 | (67.7) | (45.4) |
| Cash Capital Expenditure | 6.9 | 4.7 | 28.5 | 29.6 |
KEY PERFORMANCE INDICATORS
| Q4 2023 | Q4 2024 | FY 2023 | FY 2024 | |
|---|---|---|---|---|
| ACTIVE CUSTOMERS (M) | 8.8 | 8.0 | 8.8 | 8.0 |
| % Growth | (18.6)% | (9.2)% | (18.6)% | (9.2)% |
| NUMBER OF ORDERS (M) | 5.9 | 5.7 | 20.8 | 18.3 |
| % Growth | (19.5)% | (3.7)% | (23.1)% | (12.2)% |
| ORDER FREQUENCY (x) | 2.4 | 2.3 | 2.4 | 2.3 |
| % Growth | (5.5)% | (3.3)% | (5.5)% | (3.3)% |
| AVERAGE ORDER VALUE (€) | 62.1 | 61.9 | 61.5 | 62.5 |
| % Constant Currency Growth | 6.9% | 3.5% | 11.6% | 4.9% |
Note: All figures are presented including Chile. Starting FY 2025, Chile is classified as a discontinued operation. All 2024 figures will be restated accordingly for 2025 reporting.
* 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 defined as 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.
FURTHER INFORMATION
KPI and financial definitions, including alternative performance measures are available in the 2024 Annual Financial Report.
