In the context of an exceptionally strong comparative last year, Global Fashion Group (GFG) continued to see growth in the third quarter of 2021. The group delivered NMV of 572 million euros, up by 12 percent and 51 percent on a two year basis driven by an increase in orders and average order value. Revenues for the quarter increased 8.5 percent to 366.2 million euros.
With 17 million active customer order frequency increased by 11 percent and NMV per active customer rose 15 percent to 131.5 euros.
Commenting on the third quarter trading, Christoph Barchewitz and Patrick Schmidt, co-CEOs of GFG, said: “Fashion demand is still recovering to pre-pandemic levels in our markets, so we are very proud of our team having delivered continued growth following an exceptional Q3 last year.”
Review of GFG’s third quarter performance
The company said, third quarter performance in LATAM was affected by the exceptionally strong comparative and a weaker macroeconomic environment. In CIS, NMV grew 31 percent, while NMV growth in SEA and ANZ increased by 16 percent and 29 percent, respectively.
Marketplace grew by 28 percent in Q3, with participation reaching 40 percent of NMV. This alongside GFG’s stable retail margin helped to deliver an increase in gross margin of 1.4pps to 46 percent. The company added that the normalisation in marketing spend, together with the performance and investment in LATAM reduced Q3 EBITDA.
GFG reaffirms outlook
GFG expects to grow NMV by over 25 percent, delivering 2.3-2.4 billion euros in NMV, and 1.5 billion euros of revenue, all on a constant currency basis.
GFG continues to expect a modest improvement in adjusted EBITDA compared to the 16 million euros reported in FY2020.
In October, GFG delivered 28 percent NMV growth on a constant currency basis. The company further said that the outlook for the seasonally important November and December remains impacted by the uncertainty associated with Covid-19 across its markets.