Online fashion retailer Global Fashion Group has posted a double-digit slump in revenue for the fourth quarter amid declines in both net merchandise value (NMV) and active customers.

The group’s revenue dropped 16.8 per cent year-on-year to €243.1 million (US$264 million). NMV fell 14 per cent to €369 million due to the continued subdued consumer demand environment. 

The number of active customers decreased 18.6 per cent, while order frequency declined 5.5 per cent.

Despite the weak set of numbers, the group managed to record an adjusted EBITDA breakeven and a healthy gross margin of 43.6 per cent, up from 42.7 per cent in the year-ago period.

The Southeast Asian region saw a 18 per cent drop in NMV but delivered a slight uplift in gross margin. Similarly, Australia and New Zealand posted an increase in gross margin despite a 12.6 per cent decline in NMV, which the group attributed to challenging market conditions and higher cost of living. In Latin America, NMV fell 12.4 per cent where the focus remained on strengthening the customer proposition in an inflationary and competitive market. 

For the full year, NMV fell 14.2 per cent to €1.279 billion, while revenue decreased 18 per cent to €838 million. 

“2023 was a year of significant change and adaptation for GFG, and I am proud of the team’s resilience and focus,” said Christoph Barchewitz, CEO of Global Fashion Group.

“We anticipated a challenging market and took action to navigate it by prioritising growing our Marketplace and Platform Services, reducing costs and advancing our strategic initiatives.”

For FY24, the group expects to deliver a 5-15 per cent decrease in NMV on a constant currency basis.