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

06.03.2026 / 09:00 CET/CEST
Dissemination of a Research, transmitted by EQS News - a service of EQS
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The issuer is solely responsible for the content of this research. The
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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

Turnaround ongoing: first positive adj. EBITDA in history

GFG released its FY25 annual report, delivering results that confirm the
operational inflection we had been anticipating, rendering the fact that
shares still trade at a negative EV unjustified, eNuW.

Group NMV came in at EUR 1,042m, up 0.3% yoy (on cc) as higher order frequency
and avg. order value compensated for a slight decrease in active customers,
which stood at 7.3m (-4% yoy) at the end of the year. Q4 NMV grew 0.7% yoy
to EUR 327m. FY25 adj. EBITDA reached EUR 9.3m, notably above last year's loss
and our EUR 5.6m estimate (Q4 with EUR 16.2m, 7.6% margin) as the group's gross
margin reached 46.4% (+1.5pp yoy) and other expense ratio either remained
flat (e.g. marketing) or further improved (e.g. tech and admin).

With the improved operational performance, good w/c management and no need
for elevated capex, normalised FCF further improved to EUR -31.6m (vs. EUR
-41.5m in FY24 and EUR -62.6m in FY23). With this, cash at year end stood at EUR
176.5m.

2/3 of segments with successful turnaround. ANZ and LATAM (79% of group NMV)
showed mid single-digit NMV growth, compensating for a still challenging SEA
region (-15.2% yoy on cc) where the number of active customers was down 14%.
Yet, with most of the homework done (e.g. streamlined product and brand
assortment, increased marketplace and service revenues and sharpened
customer proposition), SEA should also return to profitable growth (gross
margin already at 46.1%) within the next one to two years.

FY26 guidance confirms further op. improvements. GFG guides for NMV cc
growth of -4% to +4% (eNuW old: 4.4%). The lower end reflects the currently
weaker consumer sentiment across its two key end markets AZN and LATAM. More
importantly, the group's adj. EBITDA is expected to further improve to EUR
15-25m (eNuW old: EUR 12.4m) as right-sized opex, customer-centric initiatives
and business model adjustments (e.g. higher marketplace share, improved
assortment and scaling Operations by and Fulfilled by) bear fruit.

Share buyback launched. With the majority of the convertible bond to be
repurchased soon (EUR 9.1m remain), the company decided to launch a share
buyback program to the tune of EUR 3m (~4% of outstanding shares at current
level), further underpinning the still attractive valuation amid the ongoing
operational turnaround.

With a still negative EV, the company is implicitly priced for near
insolvency while fundamentals are increasingly pointing towards successful
turnaround with sustainable cash generation within the next two years.
Additional progress in the still challenging SEA region could support an
earlier re-rating. We hence confirm our BUY rating with a slightly increased
EUR 1.00 PT (old: EUR 0.90) based on DCF.

You can download the research here:
https://eqs-cockpit.com/c/fncls.ssp?u=a570537458e8be2a1c1b5d60ffbdd8ed
For additional information visit our website:
https://www.nuways-ag.com/research-feed

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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2286888 06.03.2026 CET/CEST

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