Q1 net revenue rises 17.6 percent at Global Fashion Group

Global Fashion Group (GFG), in its first quarter results statement said that group net revenue was 236.9 million euros (275.4 million dollars), representing constant currency pro forma growth of 17.6 percent, translating into 3.6 percent growth in euro terms. NMV, which includes marketplace sales, was 247 million euros (287 million dollars), growing 19.9 percent on a constant currency pro forma basis.

The company added that depreciation across all key currencies impacted the absolute top line euro growth of the group, specifically the Brazilian Real, the Russian ruble and the Australian dollar. However, continued operational efficiency gains and scale leading to improved profitability. During the quarter, adjusted EBITDA margin improved to negative 13.6 percent of net revenue. Gross profit margin declined by 1 percentage points from Q117, to 37 percent driven by increased price investments at Dafiti, Zalora and The Iconic.

Overview of GFG’s regional businesses

Lamoda’s net revenue of 81.3 million euros (94.5 million dollars) for the quarter, rose 1.5 percent at constant currency. The company said, year on year depreciation of the ruble impacted absolute euro growth, resulting in a decline of 9 percent. NMV grew to 83.6 million, supported by strong marketplace performance, and delivered a constant currency growth of 4.7 percent. During the quarter, Lamoda’s gross profit margin improved by 0.8 percentage points to 34.1 percent.

Net revenue for Dafiti was 75.2 million euros (87.4 million dollars), growing 24.3 percent year on year on a constant currency basis. NMV grew to 78.6 million euros (91.4 million dollars) in the quarter, a 21.4 percent uplift year on year, driven by strong marketplace performance and strong growth in Colombia. Gross Profit margin declined year on year by 1.1 percentage points in the quarter to 40.8 percent.

Zalora and The Iconic delivered growth rates on a constant currency basis of 30.5 percent and 37.2 percent for net revenue and NMV, respectively. Net revenue was 76.7 million euros (89 million dollars) and NMV 84.7 million euros (98.5 million dollars). Gross profit margin declined by 3.5 percentage points to 37.2 percent.

Picture:Global Fashion Group website