Good morning, everyone, and welcome to Global Fashion Group's Q3 2026 results presentation. I'm Helen Hickman, CFO of GFG. I'm here with our CEO, Christoph Barchewitz, who will join us for Q&A. Today, I'll provide an overview of our third quarter results and full-year guidance. After that, we'll open it up for questions. Starting with a summary of our Q3 performance, we delivered further profit and cash flow improvement in a quarter where demand was softer. Our NMV declined 5.4% year-over-year on a constant currency basis, with ANZ continuing to grow, whilst LATAM and SEA declined. Higher energy prices and elevated interest rates added to cost of living pressures on discretionary spend in most of our markets. There were also market-specific events, which I'll cover in the segment results. We improved gross margin by 0.9 percentage points year-over-year to reach 47%, driven by business model mix and stronger retail margins in Southeast Asia. The gross margin expansion, coupled with cost savings, improved adjusted EBITDA margin by 1.6 percentage points, despite the reduced NMV and volumes. Let's take a closer look at our group KPIs. We continue to prioritize order and customer profitability over volume, supporting healthier unit economics, which we discussed in detail during our half-one results presentation. Order frequency increased by 1.8% year-over-year to 2.4 times, whilst active customers declined 7.2% year-over-year. We generated EUR 243 million of NMV in quarter three. The group's marketplace share increased by 1 percentage point year-over-year to 40%, with step-ups achieved across all three regions. Average order value increased by 4.1% year-over-year, mainly due to favorable regional mix and inflation. Looking at revenue, we declined 7.7% year-on-year on a constant currency basis, reflecting the lower NMV and increased marketplace mix. Our gross margin expansion of 0.9 percentage points year-on-year, along with ongoing fixed cost efficiency initiatives, restructuring benefits, and FX gains, supported the EUR 2.5 million adjusted EBITDA improvement in quarter three. Now looking at our regional performance. As observed in quarter two, we faced persistent demand headwinds across all three regions. Despite this, we continue to strengthen our customer proposition by further curation of our marketplace, scaling Platform Services, and enhancing our delivery experience. In ANZ, we delivered a positive Q3 with 1.4% NMV growth alongside active customer growth and gross margin expansion, even as consumer confidence in Australia remained lower than in 2025 and amid persistent inflation and rising interest rates. This reflects the strength of our proposition, supported by innovations and improvements across discovery, personalization, pricing, loyalty, and delivery. In LATAM, we continue to improve our proposition with the launch of next-day delivery in Sao Paulo and AI-enabled content production, helping our team refresh campaigns faster. The top line, however, faced headwinds from weaker Brazilian consumer confidence, which fell sharply in quarter three to its lowest level since early 2025, the World Cup, which ran until mid-July, and growing uncertainty ahead of Brazil's October election. Brazil also remained highly promotional as cross-border players stepped up activity following the removal of the federal import tax on parcels below $50 in May, which was made permanent in September. In Colombia, demand was affected by the earthquake in mid-August, impacting performance for the remainder of the quarter. LATAM's gross margin decreased by 1.4 percentage points as we focused on delivering value to our customers and keeping our inventory position healthy. SEA's top line remained under pressure as we continue to execute our turnaround plan with a focus on protecting the bottom line. SEA delivered on this priority with its highest-ever Q3 gross margin, up 4.5 percentage points to 49%, driven by stronger retail margins from reduced discounting. Marketplace and Platform Services also reached a record share of the region's business, with Platform Services alone reaching 13% of SEA's revenue, reflecting our focus on brand partnerships. Now let's move on to our cash flow for the quarter. We delivered another strong improvement in normalised free cash flow, up EUR 16 million year-on-year in quarter three. On a last 12 months basis, we improved by EUR 33 million, bringing us near break-even at negative EUR 2 million. Q3 benefited from improved adjusted EBITDA and a EUR 7 million working capital inflow. Approximately half of this reflects receivables timing that will reverse in quarter four, and the remainder is a benefit in improved payable balances. As a result, we generated cash in the third quarter for the first time. We closed Q3 with EUR 93 million of pro forma cash and EUR 82 million of pro forma net cash. With quarter four, a seasonally strong period for cash generation, we expect to end the year in an even more liquid position. Outside of normalised free cash flow, the EUR 8 million other outflow in the cash bridge includes reduced credit card receivable factoring in Brazil and share repurchases under our buyback program, partly offset by our first cash inflow from DIFAL. As we're now starting to see cash from favorable court rulings, I'd like to give you a brief overview on DIFAL and the potential positive cash impact going forward. DIFAL is a Brazilian state tax on interstate sales to final customers. Following the 2021 Supreme Federal Court decision that created legal uncertainty across the sector, we initiated 36 legal proceedings covering 2021 and 2022 and placed the disputed amounts into interest-bearing court-managed accounts. A final favorable ruling releases these deposits along with accrued interest to us in cash. In quarter three, we received EUR 0.8 million from two concluded cases. A further two cases have been won with approximately EUR 2 million still to be received. The remaining 32 cases are ongoing with the timing of each outcome unknown and decided individually by the relevant state court. The remaining DIFAL deposits and accrued interest are worth EUR 40.9 million as at the end of September. Finally turning to our expectation for the rest of the year. Q4 is our largest trading quarter and historically generates around a third of our annual NMV. We've entered the quarter well-prepared and focused on the elements we can control, availability, delivery speed, and price discipline going into what has now become Black November. Each region is tailoring its approach to local customer behavior, from more targeted category offers in ANZ to spreading demand across the months in LATAM to targeted flash sales in SEA. Overall, we entered quarter four with a strong assortment and customer proposition compared to last year. We're confident in the work the teams have done to be best positioned for the peak season. In terms of current trade, October has been more challenging than Q3, particularly in Brazil, where the presidential election concluded on the 25th of October. The local reaction continues to be volatile, distracting, and unsettling our customers. We saw a dip following the election, which we expect to normalize and continue to monitor closely. We have acted by bringing our November campaigns forward. Our most important trading events, including 11/11, Black Friday, Cyber Monday, and the holiday season are still ahead of us, so a range of outcomes still remain. On guidance, we are maintaining our year-over-year NMV expectation of between negative 4% and 0% on a constant currency basis. in light of our October performance, particularly in Brazil, we now expect to land towards the bottom end of this range. On adjusted EBITDA, we continue to prioritize profitability and therefore maintain our guidance of EUR 18 million-EUR 25 million on a year-on-year, which is an improvement of between EUR 9 million to EUR 16 million. To date, we are EUR 11 million ahead of last year. On our cash flow components, we now expect CapEx and leases to be slightly lower than in 2025. We continue to expect the cash generated from working capital to be higher than last year, which was EUR 3 million. Year to date, we have delivered strong gross margin and profit improvements despite challenging demand trends. Our continued focus on profitability is bringing us closer to our next key financial milestone of break-even normalized free cash flow. We will now open the call to your questions. If you would like to submit a written question, please click on the speech bubble at the bottom of the screen. Thank you. Thank you very much. Ladies and gentlemen, if you would like to ask an audio question, please press star one on your telephone keypad and just make sure the line is not muted to allow you to mute your equipment. So that is star one for audio questions. We will pause just a moment. Okay, we do not have any audio questions at this time. Let me Oh, one moment, please. We do have an audio question just came in, and it is from Christian Sandherr of NuWays. Please go ahead. Your line is open. Hi, good morning, everyone. First question would be maybe on the development throughout the third quarter. Do you see different trends within the individual months? I have heard before that the summer, especially July, has been particularly weak. Is it something that you have also been seeing, something like a super weak July and then a pickup in August and September? If so, does it differ between the regions? Morning, Christian. Hi, Helen here. Thanks for your question. I mean, overall, what we're seeing in October, as I said, is a slightly weaker than we've seen in the third quarter. The biggest change that we're really seeing is in Brazil, following the election, which was concluded on October 25, albeit that we're expecting the instability that we're seeing with our consumer to normalize. We're continuing to see consumer pressure in ANZ, so there's been another interest rate rise, for example, this week. You may have also read that the largest department store in ANZ, which has got significant online presence, David Jones, went into administration today. The overall competitive environment is tough, but we've built that October performances within our guidance, as we mentioned. So, it's in line with what really we were expecting. Obviously, the piece around Brazil, we're monitoring very closely. Right. Then maybe another topic on Southeast Asia, because the NMV and also revenue decline in the third quarter has been particularly weak, especially if I compare it to the development in the first half. What was driving this in particular? Because the 17% NMV decline, I think this is fairly significant. Is it significantly deteriorating consumer confidence, or what was really behind it? How do you expect this to change? I mean, ideally, this comes back into a more or less slightly decline towards the flattish development, but the 22% you are also getting to the point where it should or could potentially impact your gross margins, right? Because you are lacking, or the utilization of your warehouses fulfillment is obviously going to decrease going forward, and it's decreasing fairly quick. Yeah. Maybe, Chris, thanks for the question. I would say there's probably three things to consider here. Number one, definitely consumer environment in general is not helping, and I think we flagged that well around energy costs and all those types of topics, which clearly has a material impact in Southeast Asia as well. It drives the customer to look for more value, makes conversion more difficult, all those things that you know well. That's number one. Number two, we've obviously followed a strategy of really curating the assortment more deeply, moving out of low price points, moving out of long tail, and cutting our inventory exposure in the retail business to fewer brands and more concentrated proposition. As we cycle through those changes in a tough external environment, that explains, I would say, a lot of what you're seeing on the top line. To the point on the cost deleverage, I think the part that is very important, we highlighted, or Helen highlighted as well, is that actually on the Platform Services side, so where we are leveraging our capabilities both in operations and marketing reach, we continue to do well in the region, and we see continued further opportunities to grow that side of the business, which will help a little bit with the cost deleverage and the capacity utilization in the fulfillment centers in the regions. We have also, as you know, adjusted the capacity in the region already and will continue to look at, but currently have, I would say, less overcapacity than we used to have. Some of those actions have been mitigated. When you look at the gross margin being very, very strong, as well as the overall profitability for the group stepping forward, within that, as Helen highlighted, we have taken enough cost action in Southeast Asia to kind of mitigate these top line declines. What is absolutely true is we want to see it stabilize gradually and ultimately return to growth. There is no intention in continuing this trajectory, but it's a function of the factors I just explained. Just in general, maybe a bit broader question. If you acquire new customer cohorts, do they behave differently than the ones that you already have? Do they have higher or lower order frequency, basket sizes, et cetera? Yeah, that's a good question. For us, and I think this is pretty universal across our business and also the industry, is new customers have slightly different characteristics than existing customers. They usually come in with relatively similar order economics, but they have a generally higher propensity to churn, which is probably no surprise. Their order frequency is usually also lower in the beginning, and then as the lower frequency or lower fit customers are churning out, the remaining cohorts kind of converge into the existing base. One thing that's also very important to highlight is, given that we've been operating for 15 years now, the share of customers that are actually reactivated customers that maybe churned a year ago, or churned two years ago, or churned three years ago, and we are able to reactivate, is very, very high. We look at both new customer acquisition and reactivation, and reactivation has better economics and characteristics, and we also have purchase history, so we can be more targeted than new customers. Reactivation, and obviously in the first place churn prevention, is a huge focus area for all of our marketing CRM commercial activities. Right. Perfect. Maybe one last question. If I look at the first nine months, the normalized free cash flow has been, I think, a big improvement compared to last year. Part of it was also driven by the improvement on working capital. Do you see additional room to decrease the, let's call it the normalized working capital ratio, or are you already at a point where you say, "This is what we need to sustainably run the business"? Working capital ebbs and flows a little bit, so definitely with the seasonality of our business. We generated about EUR 3 million of cash last year through release of working capital. Year-on-year to date, we're significantly ahead of that, and I think year to date we're about EUR 16 million, of which EUR 13 million year-on-year came through in the quarter. For this year, we're definitely expecting a bigger release around working capital year-on-year than the EUR 3 million that we saw last year. We still think as we continue to optimize some of our retail assortment, et cetera, there's opportunities. But I do think as we then move into growth, as the working model is such that investment into inventory and things will be broadly offset by the benefits of marketplace. So in the mid-term, I expect working capital to neutralize much more. Okay. Perfect. That's it for now. Thank you. Thanks, Christian. Thank you. Those are your questions, Christian. We do not have any other audio questions this time. I turn the call over to you for any webcast questions. Thank you. First question from the webcast. ANZ gross margin has improved even as the consumer has softened. Can you help us understand what is driving that and whether you are seeing customers trade down or competitors behave differently? The step-up in gross margin in Australia is mainly driven by our increase in our marketplace and Platform Services mix, and marketplace especially through our Fulfilled by offering, so where we are extending our Fulfilled by offering within the marketplace model. I think with regards customers, what we are seeing obviously is they are incredibly cautious at the moment, but they are very focused around promotional periods and intent-driven with their discretionary budgets. We are moving away more probably from blanket discounting to specific targeted promotions for our customers. Next question. Peers outside of ANZ have seen SHEIN pull back on marketing since the U.S. de minimis change. Are you seeing that in Australia? Yeah, maybe I'll take that question. Certainly it's been a rational decision for SHEIN and any other cross-border players to adjust their business to the regulatory environment in the U.S. and E.U. in particular, since that has become less favorable with the changes in the de minimis and cross-border taxation regime. In turn, it clearly makes sense from their perspective for markets like U.K., Australia, Brazil, and others that on a relative basis become more attractive to be a greater focus for all of their activities, including marketing. We certainly observed that in particular in Brazil since May, and with a further increase as it became clear that this will be a legislated, for now, permanent regulation. The facts around that continue to be the same in the sense that we and many others in the market believe that this is not an appropriate way of regulating the market and creates an unlevel playing field. We will, with others in the market, continue to advocate for a more level playing field in all the markets where we operate. Next question. You called out Brazil on October trading and how you're expecting demand to normalize. How has ANZ been tracking so far this quarter, and how are you feeling about it heading into peak trading? As I mentioned earlier, across all regions, October we've seen is more challenging than Q3 on top line. But Q4 is our largest quarter. October is the smallest of those months. Overall, historically, the fourth quarter is about a third of our annual NMV. We've got all the important events ahead of us. We have 11/11, Black Friday, Cyber Monday, and rolling into the holiday period in December. All ahead of us. We're well prepared, and nothing that we've seen at the moment is really changing our view about the quarter, and we're working very hard to execute well over these critical trading weeks. Next we have, is GFG considering launching something similar like the recently announced Zalando Extended, which allows shopping third-party offers directly via the Zalando app? Yeah, I can take that. It's certainly an interesting evolution to expand their available assortment, and something we may consider as we consider discovery and that evolves. Clearly, our priority is to make sure that our apps, in particular, are the starting point of the fashion journey as much as possible. Maximizing available assortment, maximizing relevance, information, fashion advice, style advice within the app is critical. At the same time, we recognize that consumers will continue to use many other platforms for discovery, like they have used social media for a long time and are starting to use various AI surfaces more recently. In the Q2 update, we provided the information that we are partnering with Google on UCP as a launch partner in Australia. We're definitely experimenting both with ways of improving discoverability outside our app that then leads ultimately into our app, as well as strengthening the proposition within the app. What Zalando is doing is certainly interesting and something we follow closely. Next question. Has management contemplated the possibility of an IPO of The Iconic in Australia, given the outstanding performance and continued growth? Yeah, I think the right answer here is that we will always consider opportunities to unlock shareholder value. We are very aware of where the share price is relative to what we believe the fundamental value of the business is. We will always think about those things, but nothing further to update at this point. We are very focused on delivering growth, profitability, cash flow, and a strong strategic position across all of our operating regions. Next question. You closed Q3 at EUR 82 million net cash after a Q4 seasonal inflow of roughly EUR 58 million last year. What net cash level do you expect at year-end 2026, and is Q4 working capital expected to repeat last year's pattern? Thank you. Seasonally, we generate a significant amount of cash in Q4, and we are expecting this year to be similar to last year and continue that trend. I touched on working capital on an earlier answer, but as I say, we expect it to be significant or to generate more through working capital this year than the EUR 3 million last year. Year to date, we are about EUR 16 million up year on year. I mentioned in the opening slides that a small element of that, EUR 3 million, EUR 4 million, that is broadly timing, but the remaining of that should be a permanent working capital benefit. Next question. Do you expect normalized free cash flow to be positive in 2027? We are really proud of the progress that we have made on normalized free cash flow over the last few years, and the fact that today we are able to announce on a last 12 months basis, we are close to break-even at minus EUR 2 million, having improved EUR 33 million year on year. Our ambition and our next key financial milestone is to become normalized free cash flow positive, but whilst we do not guide on cash flow, we are not going to set a date. I think where we have got to to date is testimony of the work that we have done to reduce our ongoing cash requirements through really improving profitability, keeping a hold of our capex and our leases, and optimizing through our working capital. If I perhaps just take you through the building blocks of normalized free cash flow, that sort of helps on the analysis and the modeling. Our capex and leases are running slightly below last year's level of EUR 30 million. We have about another EUR 10 million for operating interest and tax and other items. To get to break-even on a normalized free cash flow basis, we need to generate about EUR 40 million through adjusted EBITDA, and then any cash that we are able to generate through working capital. This year, based on our guidance of adjusted EBITDA between EUR 18 million and EUR 25 million, and what we have seen through working capital to date and what we are expecting for the balance of the year, gives an indication that we are well on the way to getting to that milestone. Next question. How do you intend to use the DIFAL cash releases? With net cash now close to the market cap, are you considering a large return of capital to shareholders? I mean, that clearly dovetails with what you just heard from Helen around cash flow. We are first and foremost focused on delivering a sustainably cash flow positive business. We also need to manage seasonality, as well as have obviously sufficient buffers relative to the scale of the business, which is not small. But as you also know from the launch of our share buyback program in Q1 of this year, we will always actively consider returns of capital to shareholders. If and when the balance sheet allows for it, the DIFAL cash inflows are still uncertain, in particular on timing, and so we will consider that if and when we have more meaningful inflows coming out to the balance sheet and where we are then from a financial performance and cash flow perspective. Another question related to cash. How much of your net cash do you consider surplus to operating needs, and what do you plan to do with it? Is that buybacks, capital return, or reinvestment? Yeah, there's certainly several factors to consider, and it's a build on the prior responses. As you heard from Helen, we will have a strong cash balance at the end of the year. We will provide guidance for 2027 at our March full-year results, and then also consider where we are around the cash position. So I wouldn't want to kind of give you a specific number on this is the number of cash at this point in the year that we want to have, and everything else is surplus. But clearly, if the operating performance improves, we are able to continue to use the working capital facility in Australia that helps with the seasonality within that region, and we bring in some of the DIFAL proceeds. If those things kind of come together, they are clearly strengthening our liquidity position further, and that will open up more opportunity for capital return as well as reinvestment. We'll always look at both reinvestments into ultimately growth and strengthening of the business, as well as returns to shareholders. But I think it's a bit premature to go into more specifics on that. We will definitely address this more with the full-year results in March. We have no further questions on the webcast. Thank you all for joining today. If you have any further questions, please reach out to the investor relations team directly.