Global Fashion Group reports Q2 revenue, NMV growth

Global Fashion Group (GFG) has reported revenue of 505.9 million euros in the second quarter ended June 30, up 27.3 percent from the previous year, or up 10.8 percent at constant exchange rates.

The group, which operates e-commerce platforms The Iconic, Zalora, Dafiti, and Lamoda, posted net merchandise value (NMV) of 610.1 million euros, up 29.8 percent from the prior year, or up 11.8 percent on a constant currency basis.

That growth came despite a 4.6 percent drop in active customers “reflecting subdued demand and the reduced levels of marketing investments”.

However, NMV per active customer was up 23.4 percent as a result of higher order frequency and average order value, which was “predominantly driven by inflation and higher full-price mix, number of items and country mix”.

Bottom line

GFG narrowed its loss to 8.6 million euros in the quarter from a loss of 17.5 million euros a year earlier, which it said was largely due to positive FX gains and the repurchase of convertible bonds.

Meanwhile, its EBIT loss widened to 17 million euros from the loss of 15.4 million euros.

Adjusted EBITDA grew to 51.6 million euros from 11.6 million euros. Adjusted EBITDA margin was 10.2 percent compared to 2.9 percent a year ago.

“We delivered our results under difficult circumstances with all of GFG’s regions facing varying volatile environments, which our team adapted to well,” co-CEOs Christoph Barchewitz and Patrick Schmidt said in a statement.

“Despite the challenges in the quarter, we have continued to deliver against GFG’s strategic priorities,” they said.

On a constant currency basis, GFG expects full-year NMV growth of between 10 percent and 15 percent, and revenue of 1.9 billion euros.

It expects an adjusted EBITDA margin of between 3 percent and 5 percent.