Global Fashion Group (GLFGF) Q1 2026 Earnings Call

Investor webinar replay

Replay transcript excerpt

Good morning, everyone, and welcome to the Oval Passion Group's Q1 2026 results presentation. I'm Helen Hickman, CFO of GFG. Today, I'll provide an overview of our first quarter's performance. Our CEO, Christophe Bartruis, will then join us for the Q&A session. In quarter one, we delivered another strong step forward in our profitability journey. Our adjusted EBITDA margin increased by 3.5 percentage points year-over-year, given by a combination of gross margin expansion and cost discipline, proving that our focus on healthy order and customer economics is delivering tangible bottom-line impact. On a regional basis, A&Z remained resilient, with growth across all top-line metrics, which helped mitigate the group's overall small MMV decline. Our focus on customer quality is delivering clear results with order frequency over the last 12 months rising to 2.4 times, up 1.9% year over year. This marks our third consecutive quarter of growth and a turnaround from the past two years. By prioritising frequent shoppers who drive long-term value, we're building a higher quality active customer base currently at 7.2 million customers. Our more loyal customer provides a resilient foundation to navigate current pressures on new customer acquisition and volume. Our average order value grew by 5.2% to €61. This growth was mainly driven by inflation and a favourable regional mix, with increased contribution from ANZ's higher average order value. This increase helped mitigate the impact of lower volumes on our NMV, which declined by 3% on a constant currency basis to €250 million. Moving on to revenue and margins. We generated €138 million in revenue, representing a 4.3% year-over-year decline. The gap between revenue and our 3% NMV decline was driven by the continued shift in our bus...