GLOBAL FASHION GROUP REPORTS PRELIMINARY Q3 RESULTS AND UPDATES ITS GUIDANCE FOR FULL YEAR 2023

Luxembourg, 26 October 2023 – Global Fashion Group S.A. (“GFG”), the leading online fashion and lifestyle destination in LATAM, SEA and ANZ, announces its preliminary financial results for the third quarter and updates its guidance for the full year 2023.
 

Based on preliminary Q3 2023 results, GFG expects decreases of 19% in NMV and 25% in Revenue, both on a constant currency basis, and a (10)% Adjusted EBITDA margin for the quarter. NMV decreased 23% in LATAM, 17% in SEA and 18% in ANZ. Following the €102 million repurchase of its outstanding convertible bond, GFG closed the third quarter with €350 million pro forma cash and €158 million net pro forma cash. The net position excludes the convertible bond liability and third party borrowings.
 

During Q3, GFG closed its operations in Argentina in view of the challenging macro environment. The Argentinian business is now classified as a discontinued operation under IFRS 5 and is excluded from the results. Argentina made up 4% of NMV and 3% of Revenue in H1 2023. We are revising our guidance to remove Argentina and to reflect lower demand trends continuing throughout the upcoming peak trading season.

For the full year 2023, GFG now expects an NMV decrease of 16-18% on a constant currency basis which equates to c.€1.2-1.3 billion in NMV, c.€0.8 billion of revenue, an Adjusted EBITDA margin of (9)-(7)% and c.€30 million in Capex. In GFG’s guidance published on 26 July 2023, the Company estimated an NMV decrease of 10-15%, c.€1.3-1.4 billion in NMV, and c.€0.9 billion of Revenue, an Adjusted EBITDA margin of (8)-(6)% and c.€30 million in Capex.
 

All figures reported herein are preliminary and unaudited. GFG will publish its third quarter results as scheduled on 9 November 2023.
 

Person making the notification: Claire Higgins, Group Senior Legal Counsel.

 FURTHER INFORMATION

KPI and financial definitions, including alternative performance measures are available in the

2022 Annual Financial Report. 

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Forward-looking Information

This announcement contains forward-looking statements. Forward-looking statements should not be construed as a promise of future results and developments and involve known and unknown risks and uncertainties. Various factors could cause actual future results, performance or events to differ materially from those described in this announcement, and neither the Company nor any other person accepts any responsibility for the accuracy of the opinions expressed in this announcement or the underlying assumptions.

About Global Fashion Group

Global Fashion Group is the leading fashion and lifestyle destination in LATAM, SEA and ANZ. From our people to our customers and partners, we exist to empower everyone to express their true selves through fashion. Our three ecommerce platforms: Dafiti, ZALORA and THE ICONIC connect an assortment of international, local and own brands to 800 million consumers from diverse cultures and lifestyles. GFG’s platforms provide seamless and inspiring customer experiences from discovery to delivery, powered by art & science that is infused with unparalleled local knowledge. Our vision is to be the #1 fashion & lifestyle destination in LATAM, SEA and ANZ, and we are committed to doing this responsibly by being people and planet positive across everything we do.

(ISIN: LU2010095458)

For more information visit: www.global-fashion-group.com