Aug 20, 2020
Global Fashion Group Q2 revenue dips but firm sees second profitable quarter
Aug 20, 2020
Global Fashion Group (GFG), a leading online fashion and lifestyle destination focused on Asia, Latin America and eastern Europe, posted 1.8 per cent revenue decline to €336.1 million in its second quarter that ended on June 30. The group’s net merchandise value (NMV) for the quarter grew to €488.3 million from €449.4 million.
The company owns the Zalora, The iconic, Dafiti and Lamoda retail brands.
“Another strong quarter for GFG. Fashion & lifestyle e-commerce continues to accelerate across our markets helping us execute against our strategic priorities even faster. While focusing on health and safety, we delivered our second profitable quarter, with record growth across active customers, gross margin and marketplace,” Christoph Barchewitz and Patrick Schmidt, co-CEOs, said.
Gross profit for the quarter was €143.5 million (up from €141.3 million a year ago). But the firm incurred a loss for the period of €14.3 million (wider than the year earlier's -€9.3 million). Adjusted EBITDA for Q2 FY20 was a loss of €3.2 million compared to earnings of €9.5 million in Q2 FY19.
During the reported quarter, the group saw record 2.5 million new customers shopping across its platforms, as the consumer shift from offline to online continued to gained traction. The acceleration of GFG’s marketplace model allowed even more brand partners to build their presence online when much physical retail was closed. This resulted in GFG’s top-30 brands tripling their marketplace NMV year-on-year.
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