Global Fashion Group posts NMV growth of 32 percent, reaffirms outlook

In the second quarter, Global Fashion Group (GFG) delivered NMV of 610.1 million euros, up by 32 percent, which the company said was driven by new customer growth and loyal customers returning to the platform and spending more. The company’s revenue increased 24.2 percent to 397.3 million euros.

GFG now has 17 million active customers, up 15.8 percent, with two million new customers shopping across GFG’s platforms during Q2.

The company has reaffirmed its FY2021 guidance and expects to grow NMV by over 25 percent, delivering 2.3-2.4 billion euros in NMV, and around 1.5 billion euros of revenue, all on a constant currency basis. GFG expects adjusted EBITDA to improve modestly.

Commenting on the Q2 performance, Christoph Barchewitz and Patrick Schmidt, Co-CEOs of GFG, said in a statement: “It’s been another promising quarter for GFG despite the ongoing impact of the pandemic across most of our markets. As e-commerce continues to grow at pace, the resilience of the GFG team and performance of our marketplace business, continue to drive our strong results and we remain confident in achieving our long term targets.”

All GFG’s core markets perform well in Q2

The company added that all of GFG’s regions continued to grow in Q2. Markets where COVID restrictions were lifted saw the strongest growth driven by the recovery in ‘going out’ categories. This was most evident in ANZ which saw NMV growth of 68 percent as a result of the post-pandemic recovery and soft trading last year. Across all other GFG regions, ‘lockdown’ categories continued to overperform.

NMV growth in SEA was a 33 percent despite Covid restrictions and in CIS NMV grew 24 percent, following last year’s Q2 growth of 45 percent. LATAM grew 21 percent.

In the second quarter, GFG launched new categories and strategic brand partnerships including Country Road Group and Massimo Dutti, as well as geographic expansions for brands such as Kate Spade and YvesSaintLaurent. This helped drive a 60 percent growth in marketplace NMV, with participation of 37.7 percent and saw categories such as beauty grow by 68 percent.

The improvement to the company’s retail margins and the growth of GFG’s marketplace contributed to the 3.5pp increase in gross profit margin to 46 percent, and delivered a positive 2.9 percent adjusted EBITDA margin for the quarter.