Global Fashion Group: Q1 revenue declines by 19 percent

Global Fashion Group’s (GFG) first quarter net merchandise value decreased 16.5 percent to 238.8 million euros, while revenue decreased 18.8 percent to 152.7 million euros.

Commenting on the first quarter trading performance, Christoph Barchewitz, CEO of GFG, said in a statement: "We are progressing our strategy with our platform transition and cost efficiency programme delivering improvements in profitability in Q1. Both gross margin and adj. EBITDA margins expanded despite topline pressure.”

In LATAM, consumer spending weakness and intense competition led to an 18.1 percent decline in NMV. The SEA region achieved an improvement in gross margin by 5ppt to 44.6 percent despite an NMV decline of 15 percent, while in ANZ, NMV decreased by 16.4 percent.

Each region delivered gross margin expansion leading to 3 ppt increase for the group to 44 percent, while adjusted EBITDA margin increased moderately by 0.8ppts to negative 11.3 percent.

Confirming its full year guidance, the company said NMV is expected to decrease in the range of 5 to 15 percent on a constant currency basis, implying an NMV of 1.1 to 1.2 billion euros and adjusted EBITDA is expected to be between negative 25 to negative 45 million euros.