Global Fashion Group S.A. Achieves First Profitable H1

Global Fashion Group S.A. (GFG) has reported its first profitable half-year, a significant milestone confirming the anticipated operational turnaround noted in previous full-year results. Recent data shows a Q2 net merchandise value (NMV) of €263 million, marking a slight year-on-year decline of 0.6%, yet demonstrating sequential improvement. The increase in the average order value and order frequency has offset reductions in order numbers and active customer base.

The company's Q2 sales were €169 million, a reflection of the ongoing transition to a marketplace model. Importantly, Q2 saw adjusted EBITDA rising to €6.1 million, improving year-on-year profitability while maintaining a stable gross margin. Additionally, all regional divisions reported profitability for the first half of the year, with the ANZ region leading growth.

Despite adjustments to the full-year NMV growth forecast, management maintains a positive outlook with revised expectations for adjusted EBITDA guidance. GFG's ongoing restructuring might further bolster its market standing, with potential improvements in the Southeast Asia region offering prospects for future valuation adjustments.