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

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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2286888 06.03.2026 CET/CEST

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