Global Fashion Group (GFG) Q1 2025 earnings summary

Executive summary

• Q1 2025 achieved the first quarter of Group NMV growth since 2022, with NMV of €226.3m, up 1.3% year-over-year on a constant currency basis, and record gross margin of 46.0% (+2.1ppt yoy).

• Adjusted EBITDA margin improved by 3.9 percentage points to -7.3%, reflecting cost savings and a healthier inventory profile.

• Strategic initiatives and marketing efforts slowed customer decline, increased reactivations, and led to ANZ returning to active customer growth.

• Chile operations were closed in Q1 2025 and are excluded from all results except for Pro-Forma Cash.

Financial highlights

• Revenue increased 0.9% year-over-year to €146m, with gross profit at €67m.

• Average order value rose 3.6% year-over-year to €59.4, offsetting a 2.1% decline in orders to 3.8m.

• Normalised free cash flow was -€61m for Q1, impacted by working capital timing.

• Pro-forma cash at quarter-end was €158m, with €98m net pro-forma cash.

Outlook and guidance

• Full-year 2025 guidance reconfirmed: NMV expected between -5% and +5% year-over-year, or €1.0–1.1bn, with a primary objective of achieving adjusted EBITDA breakeven.

• Capex reduced to ~€20m, with no major investment projects planned.

• Working capital inflow expected to be closer to neutral.