Global Fashion Group withdraws full year outlook

In the third quarter, Global Fashion Group (GFG) delivered an NMV of 399 million euros, up by 1.7 percent despite the challenging market conditions. The company’s revenue increased 6.7 percent to 276.2 million euros.

Following the group’s decision to sell its CIS business, the company withdrew its guidance for the full year and its longer term targets which were prepared on the basis that the CIS region was part of overall the results.

“GFG has achieved NMV growth and a stable adjusted EBITDA margin despite a challenging market and trade environment for our industry. With over 800 million consumers projected to spend around 230 billion euros on fashion and lifestyle products in GFG’s markets this year, we remain confident in the significant opportunity ahead,” said Christoph Barchewitz and Patrick Schmidt, co-CEOs of GFG.

Highlights of Global Fashion Group Q3 results

The company said that the group had 11.9 million active customers, down 11.1 percent reflecting deliberate reduction in marketing investments. NMV per active customer was up by 19.4 percent as a result of higher average order value, also up 19.4 percent.

In LATAM, NMV declined 13 percent, while SEA’s NMV declined 8 percent reflecting a continued focus on premium and less so on the lower price point assortment which has impacted sales over the short term. ANZ grew strongly with 25 percent NMV growth.

Gross margin was impacted by negative 1.8 ppts related to discounting in preparation of the new season.

Global Fashion Group withdraws full year guidance

The company added that GFG’s outlook is impacted by the macroeconomic backdrop dampening consumer spend and elevated levels of uncertainty over the group’s peak trading period.

In ANZ, consumer demand trended downwards through the quarter and the company expects this alongside elevated levels of promotional activity to continue into the fourth quarter.

Earlier, for the full year, the group expected to deliver NMV growth of 10-15 percent representing 2.9 to 3 billion euros, 1.9 billion euros of revenue, all on a constant currency basis and an adjusted EBITDA margin of 3 percent to 5 percent.