Global Fashion Group signals recovery, eyes 2025 breakeven

Fashion retailer Global Fashion Group (GFG) has demonstrated a clear trend of financial stabilization, reporting significant improvements in profitability during its latest financial results.

While the fourth quarter saw a slight 0.3 percent dip in net merchandise value (NMV) and a 1.2 percent revenue decrease, these figures represent a substantial recovery compared to the previous year's sharp declines.

These results were a significant improvement from negative 14 percent GMV, 16.8 percent revenue decline in the same period of the previous year.

Christoph Barchewitz, CEO of GFG, said: "Our focus on customer engagement and assortment relevancy helped us attract customers back to our platforms and drove a gradual improvement in top line performance.”

Adjusted EBITDA margin jumped by 3.8 percentage points in the quarter, versus 0.2 percent in the previous year's fourth quarter. Gross margins also improved to 45.6 percent, indicating enhanced operational efficiency.

The company’s operations in Latin America (LATAM) and Australia & New Zealand (ANZ) showed positive NMV growth of 2.4 percent and 9.4 percent in the quarter, signalling a return to market strength in key regions. However, the company’s NMV in SEA region declined 20.3 percent as competition remained intense.

GFG projects 2025 NMV to fall within a range of -5 percent to +5 percent, aiming for 1 billion euros to 1.1 billion euros. The company's primary goal is to achieve adjusted EBITDA breakeven in 2025, despite acknowledging market uncertainties.