- Prachi Singh |
Global Fashion Group (GFG) reported net merchandise value growth of 22.7 percent year on year on a constant currency and 9.2 percent in absolute euro terms to 289.5 million euros, and improved profitability by 4.6 percentage points in the third quarter ended September 30, 2018. Group revenue (which includes only commission earned on marketplace NMV and delivery fees) for the quarter was EUR 264.6 million, constant currency growth of 16.9 percent or 3.2 percent growth in absolute euro terms.
The company said, gross profit margin in Q318 at 36.2 percent was 2.4 percentage points lower than the Q317 margin since a stronger gross margin in Australasia was offset by continued price investments in Southeast Asia (SEA), Latin America (LatAm) and Russia/CIS. Overall adjusted EBITDA margin improved 4.6 percentage points to 8.1 percent of net revenue for Q318. Active customers for the group reached 11 million, adding 1 million since the start of the year, and representing year on year growth of 15.8 percent. Net orders grew by 25.1 percent.
Regional overview of Global Fashion Group’s third quarter
In the LatAm region, Dafiti’s NMV of 91.5 million euros in the quarter represented a 14.4 percent uplift on a constant currency basis. Revenue of 82.3 million euros, grew by 13.6 percent on a constant currency basis. Continued depreciation of the Brazilian real and the Argentinian peso, the company added, resulted in absolute EUR NMV and Revenue declining by 7 percent and 10.8 percent, respectively, while gross profit margin declined by 2.2 percentage points to 40.8 percent.
In the Russia / CIS region, Lamoda’s NMV of 91.7 million euros increased by 20.8 percent on a constant currency basis, driven by accelerated marketplace growth, while revenue of 85 million euros demonstrated constant currency growth of 9 percent. GFG said, depreciation in the ruble reduced NMV and revenue growth in absolute euro terms to 9.6 percent and 0.8 percent, respectively. Gross profit margin declined by 0.8 percentage points partly due to delayed uptake of Lamoda’s fall/winter inventory given an extended warm weather period.
In the Australasia region, NMV of 65 million euros at The Iconic, grew by 38.6 percent, on a constant currency basis and revenue increased by 35.3 percent in constant currency basis to 55.2 million euros. Due to depreciation of the Australian dollar, NMV and revenue growth in absolute euro terms were 29.6 percent and 26.5 percent, respectively. Gross profit margin increased by 0.8 percentage points to 45.7 percent.
In the SEA region, Zalora’s NMV of 41.4 million euros in the quarter represented a 27.8 percent on a constant currency basis and revenue was 38.6 million euros, growing 22.7 percent on a constant currency basis. In absolute EUR terms, the NMV and revenue growth were 25.8 percent and 21.3 percent, respectively. Gross Profit margin declined by 9.6 percentage points in the quarter to 22.6 percent.