Global Fashion Group expects lower revenue and EBITDA in 2020 due to COVID-19

03/31/2020
DGAP-Ad-hoc: Global Fashion Group expects lower revenue and EBITDA in 2020 due to COVID-19

Global Fashion Group S.A. / Key word(s): Miscellaneous
Global Fashion Group expects lower revenue and EBITDA in 2020 due to COVID-19

31-March-2020 / 08:34 CET/CEST
Disclosure of an inside information acc. to Article 17 MAR of the Regulation (EU) No 596/2014, transmitted by DGAP - a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.


 

GFG expects lower revenue and EBITDA in 2020 due to COVID-19

Luxembourg, 31 March 2020 - Global Fashion Group S.A. (GFG), the leading online fashion and lifestyle destination in growth markets, reports that the global COVID-19 pandemic is negatively affecting its business with regard to demand, supply and operations across all 17 countries of operation.

After trading in line with expectations until mid-March, GFG has seen a significant negative impact on customer demand in most countries since then with the impact on supply being less pronounced given the diversified supplier base and Marketplace business model.

GFG is experiencing the temporary closure of its fulfilment centers in the Philippines and Argentina as part of government measures to contain the COVID-19 virus. These two countries together contributed 6% of its 2019 NMV. There is a possibility that GFG's fulfillment centers in other countries may be temporarily closed as it complies with future government restrictions and adapts its business to the evolving circumstances. GFG continues to accept orders in all its markets, including where temporary closures are ongoing.

As a consequence, GFG is reassessing its plans and forecasts for 2020, including making adjustments to its cost base and investment plans. GFG is therefore withdrawing its financial guidance for the current year which excluded the negative effect of coronavirus, and will issue new guidance as soon as the COVID-19 situation becomes clearer. GFG will publish its results for the first quarter as scheduled on 14 May 2020.

In addition, due to the spread of the coronavirus in Europe, GFG will postpone the company's annual general meeting scheduled for 22 May 2020 in Luxembourg. The new date for the Annual General Meeting will be announced in due course.

Enquiries

Media Relations:
Jovana Lakcevic, Head of PR & Communications: [email protected]

Investor Relations:
Adam Kay, Investor Relations Director: [email protected]

Forward looking information
This announcement contains forward-looking statements. Forward-looking statements should not be construed as a promise of future results and developments and involve known and unknown risks and uncertainties. Various factors could cause actual future results, performance or events to differ materially from those described in this announcement, and neither the Company nor any other person accepts any responsibility for the accuracy of the opinions expressed in this announcement or the underlying assumptions.

About Global Fashion Group
Global Fashion Group is the leading fashion and lifestyle retail destination in Asia Pacific, Latin America and CIS. We connect over 10,000 global, local and own brands to a market of more than one billion consumers through four established ecommerce platforms: THE ICONIC, ZALORA, dafiti and lamoda. Through an inspiring and seamless customer experience enabled by our own technology ecosystem and operational infrastructure, we are dedicated to being the #1 fashion and lifestyle destination in our markets. With 17 offices and 10 fulfilment centres across four continents, GFG proudly employs a dynamic and diverse team with deep local knowledge and expertise. In 2019, GFG delivered more than 34 million orders to over 13 million Active Customers. GFG is listed on the Frankfurt Stock Exchange (GFG.DE) ISIN: LU2010095458.
For more information visit www.global-fashion-group.com


31-March-2020 CET/CEST The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases.
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