Global Fashion Group (GFG) Q2 2025 earnings summary

Executive summary

• Achieved stable top-line performance and improved profitability in Q2 2025, with robust growth in LATAM and ANZ offsetting declines in SEA; active customer base declined 2.5% year-on-year to 7.4 million.

• Gross margin expanded by 2.9 percentage points to 47.7%, and adjusted EBITDA margin improved by 3.9 points to 1.8%, the highest ever for Q2.

• Cost base reduction and efficiency initiatives supported positive Q2 adjusted EBITDA margin; strong balance sheet with EUR 151 million pro forma cash.

• Loss from continuing operations improved to €48.6m in H1 2025 from €56.5m in H1 2024, driven by cost reductions.

• The group exited Chile and Taiwan, with Chile classified as a discontinued operation in 2025.

Financial highlights

• Q2 2025 NMV at €249m, down 0.4% year-on-year; gross profit margin rose to 47.7%.

• Revenue for Q2 2025 was €163m, down 1.2% year-on-year; gross profit at €78m.

• Adjusted EBITDA margin reached 1.8% in Q2, a 3.9 percentage point improvement year-on-year.

• Inventory aged over 180 days reduced to 15% from 20% a year ago.

• Pro-forma cash at period end was €151m, down from €316.6m a year earlier; net working capital was negative €39.5m.

Outlook and guidance

• Full-year 2025 guidance reaffirmed: NMV growth between -5% and +5% year-on-year on a constant currency basis; adjusted EBITDA breakeven targeted.

• CapEx guidance revised down from EUR 20 million to EUR 15 million due to timing of regional investments.

• Working capital inflow expected to be closer to neutral; leases to remain around 2024 levels.

• Longer-term ambition remains to achieve positive normalized free cash flow.

• Management expects continued impact from challenging macroeconomic conditions, high competition, and elevated interest rates.