×
109
Fashion Jobs
LIMEAPPLE APPAREL
Ecommerce Expert With Digital Marketing Skills
Permanent · CHENNAI
NIKE
sr. HR Operations Specialist
Permanent · Bengaluru
L'OREAL GROUP
Senior Manager - Digital Marketing & D2C, Kerastase
Permanent · Mumbai
NIKE
Senior Dynamic Application Security Tester – Cis, Icc, India
Permanent · Bengaluru
PUMA
Senior Manager - Golf Sales (Cpg-Cobra Puma Golf)
Permanent · Bengaluru
PUMA
Manager - Accounts Payable
Permanent · Bengaluru
PUMA
Senior Manager – Teamsport Sales
Permanent · Bengaluru
NIKE
Lead Technical Product Manager – p&m, Icc, India
Permanent · Bengaluru
PUMA
Manager – Warehouse Operations (Ecommerce)
Permanent · Gurugram
NIKE
Lead Product Manager, India – ed&a Icc
Permanent · Bengaluru
PVH
Manager, Business Solutions
Permanent · Bengaluru
NIKE
Identity And Access Management (Iam) Security Operations Engineer, India – Cis Icc
Permanent · Bengaluru
NIKE
Expert Security Incident Coordinator, India – Cis Icc
Permanent · Bengaluru
PUMA
Assistant Business Manager – Puma.Com
Permanent · Bengaluru
NIKE
Senior Software Engineer Iii – Retail Commerce Passplay, India - Consumer & Marketplace Icc
Permanent · Bengaluru
L'OREAL GROUP
Indirect Sourcing Manager
Permanent · Baddi
NIKE
Sap bi Lead Engineer – Sec Tech, Icc, India
Permanent · Bengaluru
NIYOSSHIC LUXURY CONSULTANCY
Social Media Intern
Internship · MUMBAI
SAAHRA
Graphic Design Summer Internships
Internship · NEW DELHI
HEMMING BEE
Fashion Production Intern
Internship · MUMBAI
HEMMING BEE
Fashion Production Intern
Internship · MUMBAI
BROADCAST THE COMPANY
Business Developement
Internship · MUMBAI
Published
Apr 10, 2018
Reading time
2 minutes
Share
Download
Download the article
Print
Click here to print
Text size
aA+ aA-

Global Fashion Group Q4 revenue up but promotions hit margins

Published
Apr 10, 2018

Rocket Internet's Luxembourg-based Global Fashion Group saw a strong revenues hike in Q4 with the final quarter accelerating slightly as revenue rose close to 23% rather than the almost 20% for the full year.


Global Fashion Group



But the firm’s profit margins were dented as it invested in promotional pricing as well as adjustments to the product mix designed to deliver higher profit over the long term.

To make comparisons easier, the company’s Q4 sales figures exclude the Namshi business as Emaar Malls has acquired a controlling 51% stake in that unit.

So what exactly happened last quarter? Group net revenue was €328 million and net merchandise value (NMV), which includes marketplace sales, was €337.7 million, up 23.7% on a constant currency pro forma basis.

And that certainly boosted headline profitability with the quarter’s EBITDA margin improving by 350 basis points. But the basic gross profit margin figure dipped for Q4 by 4.4 percentage points, largely due, as mentioned, to “price investments to trade effectively across our markets as well as product mix effects.”

This impact was “more than compensated by path-to-profit initiatives and scale benefits, which delivered the improvement in profitability,” the company said.

Looking at the group’s specific units, online fashion retailer Lamoda, which operates in Europe and Asia, said net revenue was €122.1 million for the quarter, up 16.2% on a constant currency basis. And NMV grew 11.9% to €116.1 million. 

South American unit Dafiti delivered net revenue and NMV growth on a constant currency basis of 18.2% and 22.1% to €108.4 million and €113.6 million respectively. This was driven by a successful Black Friday campaign in Brazil. Net Revenue and NMV grew to €365.2 million, up 12.5%, but again, the gross profit margin was down due to investment in competitive pricing across the region. This included key promotional events like Black Friday and Christmas promotions as well as product mix effects. 

Australasia’s Zalora and The Iconic delivered impressive growth rates in Q4 of 37.8% and 40.7% respectively for net revenue of €97.1 million and NMV of €108 million on a constant currency basis, with the gross profit margin also dented by promotional pricing.

Copyright © 2021 FashionNetwork.com All rights reserved.