Q1 2026 Global Fashion Group SA Earnings Call Transcript
Key Points
- Global Fashion Group SA (WBO:GFGT) achieved a 3.5 percentage point increase in adjusted EBITDA margin year-over-year, indicating improved profitability.
- The company reported a 5.2% growth in average order value, driven by inflation and a favorable regional mix.
- ANZ region showed resilience with a 3.5% increase in NMV and a 4.0% revenue growth on a constant currency basis.
- Gross margin improved by 0.5 percentage points year-over-year to 46.5%, supported by higher margin contributions from platform services.
- The company successfully reduced borrowings by EUR19 million, enhancing its liquidity position with EUR109 million in pro forma cash.
- Global Fashion Group SA (WBO:GFGT) experienced a 4.3% year-over-year decline in revenue, reflecting challenges in top-line growth.
- NMV declined by 3% on a constant currency basis to EUR215 million, indicating pressure on sales volume.
- The company reported a negative EUR51 million in normalized free cash flow for Q1, despite improvements from the previous year.
- ANZ's gross margin compressed by 0.4 percentage points due to investments in a new loyalty program.
- The company faces challenges in new customer acquisition and volume, relying heavily on a more loyal existing customer base.
Good morning, everyone, and welcome to Global Fashion Group's Q1 2026 results presentation. I'm Helen Hickman, CFO of GFG. Today, I'll provide an overview of our first quarter's performance. Our CEO, Christoph Barchewitz, will then join us for the Q&A session.
In quarter-one, we delivered another strong step forward in our profitability journey. Our adjusted EBITDA margin increased by 3.5 percentage points year-over-year, driven by a combination of gross margin expansion and cost discipline, proving that our focus on healthy order and customer economics is delivering tangible bottom line impact.
On a regional basis, ANZ remained resilient, with growth across all top line metrics, which helped mitigate the group's overall small NMV decline. Our focus on customer quality is delivering clear results, with order frequency over the last 12 months rising to 2.4 times, up 1.9% year-over-year. This marks our third consecutive quarter of growth and a turnaround from the past two years. By
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