Global Fashion Company Research (0A5H)

Global Fashion Group’s (GFG’s) Q325 results show underlying momentum in both Australia and New Zealand (ANZ) and Latin America (LatAm), while South-East Asia (SEA) remains firmly negative. The majority of GFG’s key performance indicators (KPIs) are pointing in the right direction, and it is generating higher profitability, reaching positive adjusted EBITDA for the last 12 months, including three positive quarters. This is significant as GFG had only reported a positive adjusted EBITDA in Q4 of FY23 and FY24. The improvement in profitability fed through to lower normalised free cash flow consumption. If the newly arrived CEO of SEA can stabilise and reinvigorate growth in the region, GFG’s valuation looks attractive.