Q4 2024 Global Fashion Group SA Earnings Call Transcript
Key Points
- Global Fashion Group SA (WBO:GFGT) achieved consistent quarterly improvement in gross margin, reaching a record 45.6% in Q4 2024.
- The company successfully reduced its total cost base by over EUR50 million, enhancing profitability.
- Strategic investments in high-return initiatives like the OWMS project improved fulfillment efficiencies.
- The company repurchased EUR124 million of convertible bonds at a 16% discount, strengthening its balance sheet.
- ANZ and LATAM regions returned to NMV growth in Q4, driven by strong Black Friday results and strategic initiatives.
- Active customers declined by 9% year-on-year, indicating challenges in customer retention.
- Order frequency reduced by 3% to 2.3 times in 2024, primarily due to weaker performance in Southeast Asia (SEA).
- SEA experienced a 17% year-on-year decline in NMV, highlighting significant regional challenges.
- The company decided to close operations in Chile due to post-COVID challenges and competitive pressures.
- Revenue for 2024 declined by 9% year-over-year on a constant currency basis, reflecting broader market challenges.
Good morning, everyone and welcome to Global Fashion Group's Q4 and Full year 2024 results presentation. I'm Christoph Barchewitz , CEO of GFG, and I'm joined today by our CFO Helen Hickman. In addition to this presentation, we have also published our annual report and People and Planet Positive report for 2024 today. All materials are available on our website.
I will now start with highlights from 2024 and cover our group-wide strategic focus areas and regional segment results. And then will then take us through the group results and outlook. After that, we will open it up for Q&A. In 2024, we made significant strides to position GFG for long term success and sustainable future growth.
As the year progressed, consumer sentiment improved and helped stabilize NMV trends in our largest markets with LATAM and ANZ returned by Q4. We achieved consistent quarterly improvement in gross margin, driven by stronger retail margins as we significantly reduced H stock levels to 14%, reduced
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