Global Fashion Group Q2 sales jump

Global Fashion Group S.A. (GFG), has announced that the company’s net merchandise value (NMV) increased 22.7 percent on a constant currency basis to 449 million euros (498 million dollars), while revenue growth was 16.5 percent as marketplace share expanded to 19 percent of NMV. The company said, active customers grew by 14.6 percent to 12 million, with NMV per active customer up 7.1 percent to 131 euros, and number of orders grew by 25.4 percent to 8.9 million.

Commenting on the results, Christoph Barchewitz and Patrick Schmidt, GFG’s Co-Chief Executive Officers, said in a statement: “Through our focus on offering inspiring and seamless customer experiences from discovery to delivery, we attracted more customers, who purchased more often, and spent more on a per customer basis. As we scale, we are using our growing operational leverage to translate this growth into improving margins and continue our path to profitability.”

The company added that profitability is on track with adjusted EBITDA margin of negative 0.9 percent. GFG reported an adjusted loss before interest, tax, depreciation and amortisation of 3.2 million euros (3.5 million dollars), broadly in line with the second quarter last year.

GFG further said that it remains confident in its outlook for the year and expects to deliver NMV constant currency growth of 20-23 percent, and achieving NMV of 1.7-1.8 billion euros. Revenue is expected to exceed 1.3 billion euros.

Picture:Global Fashion Group website