GLOBAL FASHION GROUP REPORTS Q1 2024 RESULTS

EQS-News: Global Fashion Group S.A. / Key word(s): Quarter Results
GLOBAL FASHION GROUP REPORTS Q1 2024 RESULTS

30.04.2024 / 08:00 CET/CEST
The issuer is solely responsible for the content of this announcement.

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GLOBAL FASHION GROUP REPORTS Q1 2024 RESULTS

Luxembourg, 30 April 2024 - Global Fashion Group S.A. ("GFG"), the leading
online fashion and lifestyle destination in LATAM, SEA and ANZ, delivered
margin gains against continued demand pressure in Q1 as a result of strong
inventory management and platform business growth.

Q1 2024 Highlights (growth rates at constant currency)

* Net Merchandise Value decrease of 16.5% (Q1/23: 7.1%)

* Revenue decrease of 18.8% (Q1/23: 10.3%)

* Marketplace NMV achieved 41% share of total NMV (Q1/23: 37%)

  * Gross Margin 44.0% (Q1/23: 41.0%) and Adj. EBITDA Margin (11.3)% (Q1/23:
    (12.1)%)

* Active Customers decrease of 18.5%, Order Frequency decrease of 5.7%

* Pro-Forma Cash of EUR320.8m and Pro-Forma Net Cash of EUR135.5m1

Christoph Barchewitz, CEO of GFG, said:

"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. I am
pleased by how we are not only implementing our strategy but also actively
adapting it with new initiatives, demonstrating our commitment to navigating
this market with creativity and differentiation."

In Q1 2024, GFG delivered a Net Merchandise Value ("NMV") of EUR239 million,
representing a 16.5% decrease yoy as customer demand remained under
pressure. Orders declined by 18.1% as a result of lower traffic and
conversion rates. Average Order Value increased 1.9% in Q1 reflecting
inflation impacts being mainly offset by lower items per order.

In LATAM, consumer spending weakness and intense competition led to an 18.1%
decline yoy in NMV. The region is refining its strategy and further
prioritising cost controls to address these market challenges. SEA achieved
the most significant improvement in Gross Margin, increasing 5ppt to 44.6%
despite an NMV decline of 15.0%. In ANZ, NMV decreased by 16.4%. This
reflects ANZ's relatively stronger year-on-year comparator as the consumer
spending slowdown began later than in LATAM and SEA.

Each region delivered Gross Margin expansion in Q1 leading to the 3.0ppt
increase yoy for the Group to 44.0%. The Gross Margin improvements were
driven by better Retail margins from healthier inventory profiles at the
start of the year and continued growth in Marketplace and Platform Services
across all regions. Adjusted EBITDA margin increased more moderately by
0.8ppts to (11.3)%. This difference in margin gains was primarily due to
strategic marketing investments completed as planned in Q1 to stimulate
customer expansion. There was also some impact from fixed cost deleverage
which means our cost action savings did not fully offset the decline in
volumes.

GFG's ongoing focus on cost efficiency generated a cash flow benefit by
delivering a EUR16m or 13% reduction in its total cost base on a constant
currency basis.2 Improved payment terms negotiated in LATAM at the end of
2023 shifted some trade payables from Q4 to Q1, partially offsetting this
benefit on a year-over-year comparison. On inventory, whilst investment
increased in Q1 to prepare for the new season, overall inventory levels were
down EUR52m or 29% year-over-year on a constant currency basis in line with
the disciplined approach in place. Normalised Free Cash Flow for Q1 was
EUR(60)m.

GFG closed Q1 with EUR320.8m Pro-Forma Cash and EUR135.5m Pro-Forma Net Cash.

GFG confirms its full year guidance for 2024. NMV is expected to decrease
5-15% on a constant currency basis, implying an NMV of EUR1.1-1.2 billion.
Adjusted EBITDA is expected to be EUR(25)-(45) million. GFG will continue its
focus on delivering profitability and cash flow improvements to progress
building a financially sustainable business.

     EURm, unless stated otherwise    Q1 2023    Q1 2024
     Key Financial Metrics
     NMV                              293.3      238.8
     % Constant Currency Growth      (7.1)%    (16.5)%
     Revenue                          193.6      152.7
     % Constant Currency Growth     (10.3)%    (18.8)%
     Gross Profit                      79.4       67.2
     % Margin of Revenue              41.0%      44.0%
     EBIT                            (38.4)     (31.7)
     Adjusted EBITDA                 (23.4)     (17.3)
     % Margin of Revenue            (12.1)%    (11.3)%
     Key Cash Metrics
     Pro-Forma Cash1                  488.5      320.8
     Pro-Forma Net Cash1              189.9      135.5
     Normalised Free Cash Flow3      (62.1)     (60.3)
     Cash Capital Expenditure           7.3        6.5

                                    Q1 2023    Q1 2024
     Key Performance Indicators
     Active Customers (m)              10.3        8.4
     % Growth                       (17.2)%    (18.5)%
     Number of Orders (m)               5.0        4.1
     % Growth                       (18.8)%    (18.1)%
     Order Frequency (x)                2.5        2.4
     % Growth                          0.7%     (5.7)%
     Average Order Value (EUR)           59.2       58.9
     % Constant Currency Growth       14.4%       1.9%
  1. Pro-Forma Cash is defined as cash & cash equivalents at the end of the
    period, short term duration bonds and securitised funds plus restricted
    cash and cash on deposits. Pro-Forma Net Cash is Pro-Forma Cash
    excluding third party borrowings and convertible bond debt.

  2. Total cost base includes expenses related to fulfilment, marketing,
    technology (including capital expenditure), admin (excluding share-based
    payments) and cash lease payments net of sublease income.

  3. Normalised Free Cash Flow ("NFCF") represents operating cash flows
    excluding discontinued operations, exceptional items, changes in
    factoring principal, interest and tax on investment income and
    convertible bond interest.

FURTHER INFORMATION

KPI and financial definitions, including alternative performance measures
are available in the

2023 Annual Financial Report.

For inquiries, please contact:

Saori McKinnon

Head of Investor Relations & Communications

investors@global-fashion-group.com

press@global-fashion-group.com

Forward-looking Information

This announcement contains forward-looking statements. Forward-looking
statements should not be construed as a promise of future results and
developments and involve known and unknown risks and uncertainties. Various
factors could cause actual future results, performance or events to differ
materially from those described in this announcement, and neither the
Company nor any other person accepts any responsibility for the accuracy of
the opinions expressed in this announcement or the underlying assumptions.

About Global Fashion Group

Global Fashion Group is the leading fashion and lifestyle destination in
LATAM, SEA and ANZ. From our people to our customers and partners, we exist
to empower everyone to express their true selves through fashion. Our three
ecommerce platforms: Dafiti, ZALORA and THE ICONIC connect an assortment of
international, local and own brands to a market of 800 million consumers
from diverse cultures and lifestyles. GFG's platforms provide seamless and
inspiring customer experiences from discovery to delivery, powered by art &
science that is infused with unparalleled local knowledge. Our vision is to
be the #1 fashion & lifestyle destination in LATAM, SEA and ANZ, and we are
committed to doing this responsibly by being people and planet positive
across everything we do.

(ISIN: LU2010095458)

For more information visit: www.global-fashion-group.com


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   Language:       English
   Company:        Global Fashion Group S.A.
                   5, Heienhaff
                   L-1736 Senningerberg
                   Luxemburg
   E-mail:         investorrelations@global-fashion-group.com
   Internet:       https://global-fashion-group.com
   ISIN:           LU2010095458
   WKN:            A2PLUG
   Listed:         Regulated Market in Frankfurt (Prime Standard);
                   Regulated Unofficial Market in Berlin, Dusseldorf,
                   Tradegate Exchange; Luxembourg Stock Exchange
   EQS News ID:    1892259

End of News EQS News Service
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1892259 30.04.2024 CET/CEST