Global Fashion Group S.A.: Operational Turnaround and Positive Prospects

Global Fashion Group S.A., covered in a recent research by NuWays AG, shows promising signs of recovery and growth. The issuer has maintained a BUY recommendation with a target price of €0.9, anticipating positive changes over the next 12 months. Key regions like ANZ and LATAM, representing 79% of the group's NMV, have returned to customer growth, highlighted by increases of 4.7% and 1% in Q3 respectively. This recovery is expected to continue in FY26/27 despite challenges in SEA.

The company has managed to mitigate foreign exchange impacts that have previously hindered growth. By achieving positive adjusted EBITDA in FY25 and targeting a 3% margin by FY27, GFG is on a trajectory of financial improvement. Moreover, the nearly full redemption of a convertible bond further strengthens its financial position.

Overall, management has made significant strides in restructuring, which sets a path for sustained positive cash flows and potential stock price increases.