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

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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