Original-Research: Global Fashion Group S.A. (von NuWays AG): BUY

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Original-Research: Global Fashion Group S.A. - from NuWays AG

14.08.2026 / 09:00 CET/CEST

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Classification of NuWays AG to Global Fashion Group S.A.

Company Name: Global Fashion Group S.A.

ISIN: LU2010095458

Reason for the research: Update

Recommendation: BUY

Target price: EUR 1

Target price on sight of: 12 months

Last rating change:

Analyst: Christian Sandherr

Q2 review: First profitable H1 on better unit economics

GFG released H1 figures that confirm the operational inflection anticipated

at the FY25 results, with the group now delivering profitability across a

full half-year rather than a single strong Q4, eNuW.

Q2 group NMV came in at EUR 263m, down 0.6% yoy (on cc), a clear sequential

improvement from Q1's -3.0%, as a 5.3% higher average order value (EUR 68.7)

and 1.8% higher order frequency largely compensated for 5.6% fewer orders

and active customers of 7.0m (-5.5% yoy). Management attributes the AOV

increase to reduced discounting, price inflation and a more favourable

regional mix. Q2 sales of EUR 169m (-2.9% cc, Q1: -4.3%) continued to lag NMV,

reflecting the ongoing shift towards an asset-light marketplace. H1 NMV

stood at EUR 478m (-1.7% cc).

Further profitability improvements. Q2 adj. EBITDA reached EUR 6.1m (3.6%

margin vs. 1.8% in Q2'25) with the gross margin flat yoy at 47.7%, but

carried by lower key cost ratios (e.g. tech & admin). H1 adj. EBITDA of EUR

0.8m (H1'25: EUR -7.7m) marks the first profitable H1 within the current

footprint and, importantly, decouples profitability from a volume recovery.

Cash generation continued to improve, with Q2 normalised FCF turning

positive at EUR 1.8m (+EUR 3m yoy) on stable leases, working capital and capex,

lifting the LTM figure by EUR 28m yoy to EUR -19m. Notably, management confirmed

that c. EUR 30m adj. EBITDA is required for FY NFCF breakeven, a level our

estimates reach in FY27/28e without any NMV recovery. Pro-forma cash stood

at EUR 105m with net cash of EUR 89m.

All three regions profitable in H1. ANZ (+3.0% cc) remained the growth

engine on further active customer gains, while LATAM was broadly flat (-0.6%

cc). SEA declined 10.3% cc, yet still improved its gross profit yoy,

evidencing that the region has been right-sized ahead of any demand

recovery. Notably, each region delivered yoy adj. EBITDA margin expansion in

H1.

Guidance narrowed in both directions. GFG cut FY26 cc NMV growth to -4% to

0% (old: -4% to +4%, eNuW old: +0.8%) on a softer expected H2, while raising

the lower end of adj. EBITDA guidance to EUR 18-25m (old: EUR 15-25m, eNuW: EUR

19m). Helpfully, AUD and BRL have turned supportive after three years of

translation drag, hence the cc range converts into reported NMV of EUR

1,050-1,090m (eNuW old: EUR 1,049m). Our adj. EBITDA of EUR 19m remains

unchanged.

With the group now profitable in every region and the path to sustainable

cash generation quantified (and within reach), the current valuation

continues to understate the progress made. Tellingly, gross profit less

fulfilment and marketing is up 91% per active customer and 99% per order

versus LTM June 2023 (cc), despite 23% fewer customers, i.e. the base GFG

shed was structurally unprofitable and the improvement is embedded in the

operating model rather than dependent on demand. Additional evidence of

stabilisation in SEA could support an earlier re-rating. We hence confirm

our BUY rating with an unchanged EUR 1.00 PT based on DCF.

You can download the research here:

https://nwr.eqs-cockpit.com/fncls2.ssx?fn=redirect&u=1286da2356aa1efa179e332b26c53e87

For additional information visit our website:

https://www.nuways-ag.com/research

Contact for questions:

NuWays AG - Equity Research

Web: www.nuways-ag.com

Email: research@nuways-ag.com

LinkedIn: https://www.linkedin.com/company/nuwaysag

Adresse: Mittelweg 16-17, 20148 Hamburg, Germany

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Diese Meldung ist keine Anlageberatung oder Aufforderung zum Abschluss

bestimmter Börsengeschäfte.

Offenlegung möglicher Interessenkonflikte nach § 85 WpHG beim oben

analysierten Unternehmen befindet sich in der vollständigen Analyse.

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2382952 14.08.2026 CET/CEST

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