For the second quarter, Global Fashion Group’s (GFG) net merchandise value (NMV) of 346.5 million euros was negative 14.7 percent compared to the same quarter of 2022 and revenues were down 18.6 percent to 223.8 million euros.
The company’s first half NMV of 649.9 million euros was down 11.2 percent, while revenues declined 14.9 percent to 422.3 million euros.
Gross margin dropped to 42 percent and adjusted EBITDA margin was negative 7.2 percent. Active customers were down 19 percent and order frequency declined by 1.2 percent.
Commenting on the trading update, Christoph Barchewitz, CEO of GFG, said in a statement: “Macro pressures continue to impact customer behaviour in GFG’s markets, which is reflected in our Q2 results. While our topline is challenged in the near-term, our commitment to improving each of our regions’ propositions for demand recovery, remains strong.”
In the company’s LATAM region, NMV declined 19 percent due to a drive for marketing efficiency and lower purchasing power with elevated inflation and interest rates. In SEA, NMV fell 16.9 percent reflecting the company’s prioritisation of profit over growth in a weaker demand environment. In ANZ, the company said, steadily increasing interest rates, elevated inflation and GDP growth declines led to reduced discretionary spend and higher discounting to match a competitive market. As a result, ANZ’s NMV declined by 9 percent.
For the full year, GFG expects to deliver NMV growth of in the range of negative 15 to negative 10 percent to between 1.3 and 1.4 billion euros and 0.9 billion euros of revenue on a constant currency basis. Adjusted EBITDA margin is expected to be negative 8 percent to negative 6 percent.