Global Fashion Group (GFG) Q2 2026 earnings summary

Executive summary

• Achieved first positive H1 adjusted EBITDA, reflecting improved cost discipline, operational efficiency, and a €23 million year-over-year improvement; normalized free cash flow improved by €28 million.

• Enhanced unit economics by prioritizing value over volume, with sales and profit per customer and per order growing strongly, despite a 5.5% decline in active customers and lower order volume.

• Advanced delivery proposition, expanded marketplace, and scaled platform services, including Fulfilled by GFG and AI integration across business functions.

• Loss for the period narrowed to €18.2m from €54.4m in H1 2025, aided by a €22.8m swing in foreign exchange gains.

• Guidance for FY2026 narrowed, reflecting stable topline and strong H1 profitability.

Financial highlights

• H1 2026 NMV was €478.3m, down 1.7% year-over-year on a constant currency basis; Q2 NMV was €263m, down 0.6% year-over-year.

• Adjusted EBITDA margin increased by 1.8 percentage points in Q2 to 3.6%; H1 adjusted EBITDA improved by €9 million to €0.8 million, marking the first positive H1 adjusted EBITDA.

• Gross margin improved by 0.2 percentage points year-over-year to 47.2% in H1 and was stable at 47.7% in Q2.

• Order frequency rose 1.8% year-over-year to 2.4x, while average order value increased by 5.3%, offsetting a 6.6% decline in order volume.

• Pro-forma net cash at €88.5m as of June 2026; cash and cash equivalents at period end: €98.4m.

Outlook and guidance

• FY2026 NMV guidance narrowed to -4% to 0% year-over-year, implying €1,050-1,090m; adjusted EBITDA expected between €18 million and €25 million.

• Guidance reflects challenging macro conditions, including elections in Brazil, cost of living pressures in ANZ, and sector-wide legal uncertainty in Brazil.

• CapEx, leases, and working capital expectations unchanged; ongoing FX tailwinds could benefit reported results.