Case Study: International fashion brand shields cash flows from currency volatility with Kantox Dynamic Hedging®

How a international Fashion brand shielded its cash flows from currency volatility

International Fashion Brand, a leading European direct-to-consumer fashion company (€198m annual revenue, 10m monthly visitors, deliveries to 100 countries), faced significant FX risk from thousands of EUR- and USD-denominated supplier purchases, multi-currency marketplace sales, a 150-day gap between orders and payments, and weekly PSP settlements that created translation exposure on the balance sheet. To protect margins and support fast growth the company turned to Kantox and its Kantox Dynamic Hedging® solution.

Kantox integrated Kantox Dynamic Hedging® with the client’s ERP/TMS via API to automatically monitor exposures, determine hedge timing and size, and route trades through MDPs and partner banks. The automated hedging of sales and purchase orders secured profit margins, reduced translation risk, supported scalability and broader currency coverage, and increased cash flows by hedging USD exposure with forward contracts to capture favourable forward points—concretely protecting the International Fashion Brand’s cash flows from currency volatility.