Earnings call transcript: Global Fashion Group posts first profitable H1 in 2026

Global Fashion Group announced they achieved their first profitable half-year in 2026, thanks to cost reductions, improved profit margins and a stronger distribution mix. Adjusted EBITDA reached EUR 1 million for H1 2026, a significant improvement from EUR 9 million year-over-year decline. Normalized free cash flow turned positive on a trailing twelve-month basis, although it remains negative.

The company's stock price rose 4.35% to $0.48 following the report, still below its 52-week high of $0.59. Sales in H1 2026 fell 3.5% on a constant currency basis, while gross margin improved to 47.2% and adjusted EBITDA margin increased by 2.8 percentage points to EUR 1 million. Active customers declined 5.5% year-over-year, but order frequency rose 1.8% to 2.4 times and average order value increased by 5.3%.

Profit contributions per customer and per order showed significant growth over a three-year period, indicating progress despite revenue and NMV challenges. The company is shifting towards higher-value customers and better cost control, while also integrating AI across its operations for content creation, pricing and discovery. CFO Helen Hickman highlighted the company's progress towards a break-even position on a trailing 12-month basis.

CEO Christoph Barchewitz emphasized the company's execution of its strategy and the foundation it's creating for profitable growth.