Global Fashion Group (GFG) Q4 2024 earnings summary

Executive summary

• Achieved stabilization in NMV trends in key markets, with Q4 growth in LATAM and ANZ, improved gross margin and inventory efficiency, and exceeded expectations for adjusted EBITDA in 2024.

• Revenue for FY 2024 declined 11% year-over-year to €743.5m, with all regions experiencing contraction.

• Net loss narrowed to €85.1m in FY 2024 from €181.5m in FY 2023, reflecting cost reductions and lower impairments.

• Strengthened balance sheet by repurchasing €124m of convertible bonds at a 16% average discount, addressing 85% of convertible liability.

• Commenced winddown of Chile operations in Q1 2025 due to persistent underperformance; FY24 results include Chile unless otherwise noted.

Financial highlights

• FY 2024 NMV: €1,142m, down 7.8% year-over-year (constant currency); Q4 NMV: €354m, down 0.3% year-over-year.

• Gross margin reached a record 45.6% in Q4 and 44.9% for the full year.

• Adjusted EBITDA margin improved to -2.8% for the year; Q4 adjusted EBITDA margin was 3.8%.

• Total cost base reduced by €56m year-over-year, mainly through fulfilment, marketing, and tech/admin savings.

• Normalised free cash outflow was €45.4m, a €22.3m improvement from 2023.

• Pro-forma year-end cash was €222m; net cash €164m.

Outlook and guidance

• FY 2025 guidance (ex Chile): NMV expected to range from -5% to +5% year-over-year (€1.0–1.1bn); Adj. EBITDA targeted at breakeven.

• CapEx expected to reduce by one third to €20m; working capital to be closer to neutral; no major investment projects planned.

• Chile is classified as a discontinued operation for FY 2025, with all 2024 figures to be restated accordingly.

• Long-term focus on positive adjusted EBITDA and break-even normalized free cash flow.