- Prachi Singh |
Global Fashion Group (GFG) reported net revenue for the second quarter was 281.9 million euros (340 million dollars) representing growth of 25.6 percent on a euro basis and 16 percent on a constant currency pro-forma basis. NMV, which includes marketplace sales, reached 292.1million euros (352 million dollars), increasing 29.3 percent on a euro basis and 18.8 percent on a constant currency pro-forma basis.
The company’s adjusted EBITDA margin improved by 6 percentage points to 4.3 percent of net revenue. At 12.1 million euros (14.6 million dollars) for the quarter, the adjusted EBITDA loss nearly halved from 23.1 million euros (27.8 million dollars) in Q2 2016. This, the company said, was driven by a gross profit improvement of 0.4 percentage points, and a continued focus on technological and operational efficiency gains.
GFG’s regional platforms report revenue growth
Lamoda, GFG said, achieved Q2 NMV and net revenue growth on a euro basis of 38.7 percent and 39.3 percent, and on a constant currency basis of 17.1 percent and 19.1 percent, respectively, despite the continued intense competition and the unseasonably cold weather impacting the launch of the spring summer 17 range.
Dafiti delivered increased Q2 NMV and net revenue growth on a constant currency basis of 14.4 percent and 7.7 percent, respectively, with further strong marketplace NMV growth in all countries. On a euro basis, Q2 NMV and net revenue grew by 24.3 percent and 17.3 percent respectively. Gross profit for the region also increased by 0.5 percentage points to 45.3 percent.
Zalora and The Iconic delivered accelerated Q2 growth in NMV and net revenue compared to Q1. On a constant currency and pro-forma basis, Q2 NMV and net revenue grew by of 25.4 percent and 22.5 percent, respectively and by 26 percent and 22.4 percent on a euro basis. Gross profit margin increased by 3.6 percentage points to 40.5 percent. Zalora saw the successful launch of new brands in the quarter, including Adidas, Hollister & Co and Hugo Boss, while The Iconic onboarded 28 new retail brands and over 60 new marketplace brands.
GFG inks Namshi Middle East and Zalora Philippines partnerships
GFG added that the partnership in the Middle East with Emaar Malls acquiring 51 percent of Namshi was completed in August for a cash consideration of 151 million dollars.
The partnership in the Philippines with Ayala acquiring a 49 percent of Zalora Philippines through a primary investment was also completed last month. GFG is looking forward to the strategic and operational benefits both of these partnerships will bring to the businesses in these two regions.