Global Fashion Group expects to report strong Q2

Global Fashion Group (GFG) expects second quarter to be its second adjusted EBITDA-profitable and first cash flow-positive quarter, as a result of strong customer demand recovery since the end of April, and the company’s strategic response to the Covid-19 pandemic. According to the preliminary results, the company said in a statement, it expects net merchandise value (NMV) growth on a constant currency basis of above 20 percent for the quarter despite the negative Covid-19 impact in April, driven by more than two million new customers.

Commenting on the preliminary second quarter update, Christoph Barchewitz and Patrick Schmidt, Co-CEOs of GFG said: “Over the last few months customer acquisition, marketplace share growth and brand relationships have been accelerated. In this way, we have continued to execute against our strategic priorities with a focus on capturing the significant fashion and lifestyle ecommerce opportunity in our markets.”

GFG experienced a strong recovery in sales from late April, with order intake up over 30 percent since the start of May compared to the same period last year driven by strong performances in CIS and LATAM, while APAC saw more moderate growth as a result of soft trading in Australia. The company added that adjusted EBITDA profitability is enabled by strong gross margin and significantly better marketing efficiency. GFG witnessed improved marketplace share of more than 30 percent and around 90 percent marketplace NMV growth as a result of category mix shift and increased marketplace SKU share.

GFG will publish its second quarter and first half results on August 20, 2020.