Global Fashion Group forecasts 19 percent drop in revenue for Q2

Global Fashion Group (GFG), the online fashion conglomerate in LATAM, SEA and ANZ, has published its preliminary financial results for 2023 Q2, during which time it said it is expected to post a 19 percent drop in revenue.

The group further forecast its net merchandise value (NMV) to hit a 15 percent decline, while its adjusted EBITDA margin is expected to sit at 7 percent.

NMV in all operating regions for the company had declined – 19 percent in LATAM, 17 percent in SEA and 9 percent in ANZ.

Q2 2023 sales and volumes “lower than anticipated”, GFG noted, particularly in ANZ where the company is hoping to perform more strongly in the second half of the year.

As a result, the group ultimately lowered its forecasts for FY23, adding that the results will likely be impacted by “greater discounting” and “clearing of higher than planned levels of aged inventory”.

GFG said that it is now expecting FY23 NMV to decline between 15 to 10 percent, with revenue coming in at 0.9 billion euros and an adjusted EBITDA margin of -8 to -6 percent.

These are notably lower than the company’s previous outlined forecasts published in March 2023, where it expected NMV decline between -5 and 0 percent and one billion euros in revenue.