GLOBAL FASHION GROUP UPGRADES FULL YEAR 2020 OUTLOOK AFTER STRONG Q3 GROWTH AND PROFITABILITY

Luxembourg, 8 October 2020 - Global Fashion Group S.A. ("GFG"), the leading online fashion and lifestyle destination in growth markets, updates its outlook for the current financial year as a result of exceptionally strong trading in Q3.

It now expects to be profitable with respect to Adjusted EBITDA and achieve constant currency Net Merchandise Value ("NMV") growth of around 23%, delivering c.€1.9 billion NMV and c.€1.3 billion of revenue. Capex investment will be around €45 million. This guidance is based on the currency exchange rates at 30 September 2020. In its outlook statement published on 20 August 2020, GFG previously guided to constant currency NMV growth of c.20%, delivering c.€1.9 billion NMV and c.€1.3 billion of revenue. GFG expected to approach breakeven with respect to Adjusted EBITDA and capex investment of no more than €45 million.

The Company expects Q3 to be another Adjusted EBITDA-profitable and cash flow-positive quarter as a result of strong customer demand. Preliminary results indicate the following expected performance in Q3:

• NMV growth on a constant currency basis of over 33%.
• LATAM grew significantly ahead of the Group, while CIS and SEA were in line. ANZ grew less quickly than the Group, as a result of inventory shortages, but is expected to report positive growth for Q3.
• Marketplace continued to be a strong driver of growth with its share of NMV increasing moderately compared to Q2.
• Adjusted EBITDA profitability (low single digit margin), was enabled by strong gross margin and cost efficiencies.
• Profitability, alongside disciplined working capital management and capex, resulted in another quarter of strong cash generation, and a pro-forma cash balance at 30 September of around €280 million.

GFG will publish its third quarter results on 12 November 2020 as scheduled.

All numbers presented in this release are unaudited and based on first preliminary indications (including a number of estimates). The final numbers may deviate from the numbers presented in this release.

Person making the notification: Andin Fonyonga, Group Head of Legal & Compliance.

FURTHER INFORMATION
KPI and financial definitions, including alternative performance measures are available in the H1 2020 Interim Management Report.

For inquiries please contact:

Press / Communications
Christina Song, Strategy Director
[email protected]

Investor Relations
Adam Kay, Investor Relations Director
[email protected]

Forward looking information
This announcement contains forward-looking statements. Forward-looking statements should not be construed as a promise of future results and developments and involve known and unknown risks and uncertainties. Various factors could cause actual future results, performance or events to differ materially from those described in this announcement, and neither the Company nor any other person accepts any responsibility for the accuracy of the opinions expressed in this announcement or the underlying assumptions.

About Global Fashion Group
Global Fashion Group is the leading fashion and lifestyle retail destination in LATAM, CIS, SEA and ANZ. We connect over 10,000 global, local and own brands to a market of more than one billion consumers through four established ecommerce platforms: dafiti, lamoda, ZALORA and THE ICONIC. Through an inspiring and seamless customer experience enabled by our own technology ecosystem and operational infrastructure, we are dedicated to being the #1 fashion and lifestyle destination in our markets. With 17 offices and 10 fulfilment centres across four continents, GFG proudly employs a dynamic and diverse team with deep local knowledge and expertise. In the twelve months to 30 June 2020, GFG delivered over 36.8 million orders to 14.6 million Active Customers. (ISIN: LU2010095458.)

For more information visit: www.global-fashion-group.com