Global Fashion Group posts positive Q2, maintains guidance

Global Fashion Group (GFG), an online fashion and lifestyle e-commerce company, has reported a profitable second quarter for 2025, driven by strong gross margins and effective cost control. The company's net merchandise value saw a slight decrease of 0.4 percent year-on-year, while revenue declined by 1.2 percent in constant currency.

Gross margin for the quarter of 47.7 percent, saw a 2.9 percentage point increase from the previous year, and a 3.9 percentage point improvement in adjusted EBITDA margin, reaching 1.8 percent. This financial strength was driven by robust performance in the ANZ (Australia and New Zealand) and LATAM (Latin America) regions. LATAM's NMV grew by 10.2 percent, while ANZ saw a 5.8 percent increase, accompanied by a 4.3 percent rise in active customers. Conversely, the company faced continued challenges in Southeast Asia, where NMV declined as GFG prioritised profitability.

The company's marketplace NMV recorded growth, now accounting for 38.7 percent of its total NMV.

Christoph Barchewitz, CEO of GFG, credited the positive results to ongoing cost-saving initiatives and a strong recovery in two of its three key regions. He emphasised the company's focus on building sustainable growth and delivering value to customers and brand partners.

Looking ahead, GFG has reconfirmed its full-year guidance for 2025, with NMV expected to be in a range of -5 percent to 5 percent and Adjusted EBITDA projected to be at the break-even level.