Global Fashion Group expects lower revenue and EBITDA in 2020 due to COVID-1903/31/2020
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
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.
Forward looking information
About Global Fashion Group
|Company:||Global Fashion Group S.A.|
|Phone:||+352 691 20 56 54|
|Listed:||Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Dusseldorf, Tradegate Exchange; Luxembourg Stock Exchange|
|EQS News ID:||1011301|
|End of Announcement||DGAP News Service|