Global Fashion Group S.A. (GFG) revenues increased 11.3 percent and net merchandise value (NMV) increased by 22.8 percent to 488.3 million euros for the second quarter. In euro terms, revenues dropped 1.8 percent to 336.1 million euros. The company said in a statement that marketplace NMV grew by 90 percent resulting in 31 percent share compared to 19 percent in the second quarter of 2019. The company reported adjusted EBITDA profitability of 9.5 million euros, a margin of 2.8 percent, breaking even for the second time.
Commenting on the second quarter results, Christoph Barchewitz and Patrick Schmidt, Co-CEOs of GFG, said: “Another strong quarter for GFG. Fashion & lifestyle ecommerce continues to accelerate across our markets helping us execute against our strategic priorities even faster. While focusing on health and safety, we delivered our second profitable quarter, with record growth across active customers, gross margin and marketplace.”
While the company witnessed record active customer growth of 21.6 percent to 14.6 million, with NMV per active customer of 126.2 euros, orders grew by 18.8 percent to 10.6 million, with a 3.3 percent increase in average order value, and customer frequency of 2.5 times per year.
Commenting on the outlook, the company added that Covid-19 continues to impact countries globally, and the economic and consumer outlook remains uncertain across GFG’s markets. After strong and profitable growth in the second quarter, the company expects constant currency NMV growth of 20 percent delivering 1.9 billion euros NMV and 1.3 billion euros of revenue for the full year. GFG also expects to approach breakeven with respect to adjusted EBITDA.