The Global Fashion Group (GFG) recorded revenue of €743.5m in 2024, representing a decrease of 8.6% compared to the previous year’s €838m. Despite this decline, the company significantly improved its profitability. Gross profit reached €333.8m, slightly down from €352.9m in 2023. However, the company’s focus on cost reductions and efficiency led to a substantial improvement in operating performance.
The adjusted Ebitda (a measure of profitability) loss was reduced to €20.5m, a notable improvement from the -€58.3m reported in 2023. Loss before interest and taxes also saw a significant recovery, reaching €82.1m compared to €178.5m the previous year. Similarly, the total loss for the year was cut by more than half, standing at €84.1m, compared to €179.9m in 2023.
The gross profit margin increased by 2.8 percentage points, reflecting better inventory and pricing strategies, according to the company. Although it strengthened its financial position, no dividends were announced, indicating that GFG remains focused on stabilising operations and improving profitability before considering shareholder distributions.
The CEO of GFG, Christoph Barchewitz, stated: “In 2024, we made significant strides to position GFG for long-term success and sustainable future growth. Our focus on customer engagement and assortment relevancy helped us attract customers back to our platforms and drove a gradual improvement in topline performance. By Q4, we stabilised net market value trends in our largest markets with Latam and ANZ returning to growth. Notably, we achieved this whilst increasing both gross margin and adjusted Ebitda Margin significantly. We are proud of the tangible progress achieved in 2024 and entered 2025 committed to building on this momentum to continue our clear trajectory toward our financial ambitions of positive adjusted Ebitda and breakeven normalised free cash flow.”
Key changes in 2024
Global Fashion Group said it underwent several strategic changes in 2024 to improve efficiency and refocus its operations. One of the most significant decisions was the closure of its Chilean operations, which will be completed in early 2025. The company opted to exit this market due to challenging business conditions and will now concentrate its efforts on stronger-performing regions such as Brazil and Colombia.
In a major financial move, the company repurchased €123.6m of its outstanding convertible bonds at a discount. This decision significantly reduced GFG’s debt burden and strengthened its long-term financial stability.
The company also invested heavily in technology to enhance operational efficiency. It implemented a new order and warehouse management system in Australia and New Zealand, aligning it with the system already in use in Southeast Asia. This upgrade is expected to improve fulfilment processes and unlock further efficiencies across the business.
With a more disciplined cost structure, a reduced debt load, and a stronger technological foundation, Global Fashion Group is positioning itself for a more stable and profitable 2025. The company aims to build on its momentum in Australia and Latin America while focusing on stabilising performance in Southeast Asia. On February 3, 2025, Gunjan Soni, group chief operating officer, resigned from the management board, and Helen Hickman, previously group chief financial officer, was appointed to replace her on the same day.
Global Fashion Group operates three brands--Dafiti, Zalora and The Iconic--reaching 800m consumers across Latin America, Southeast Asia, and Australia and New Zealand. The company employed 3,558 people worldwide in 2024.