Global Fashion Group posts strong growth in Q1

Global Fashion Group S.A. (GFG), has reported growth in net merchandise value (NMV) of 22 percent to 341 million euros (383 million dollars) on a constant currency basis in the first quarter, while active customers reached 11.5 million, growing 14.5 percent year on year. The company’s revenue reached 261 million euros (293 million dollars), growing 15.1 percent on a constant currency basis, while adjusted EBITDA margin reached negative 9.8 percent, an improvement of 1.9 ppts.

Commenting on the company’s performance, Christoph Barchewitz and Patrick Schmidt, GFG’s Co-Chief Executive Officers, said in a statement: “It has been a quarter of strong growth for GFG . Our customers are also buying more, and more often, as we use technology and our unique distribution network to make buying fashion online a frictionless part of every-day life.”

Highlights of GFG’s first quarter

With active customers for the group reaching 11.5 million in the first quarter of 2019, the company said, NMV per active customer also grew by 7.5 percent on a constant currency basis, while orders rose by 26.8 percent to 6.9 million, with order frequency going up by more than 8 percent compared to the same period last year.

The company added that marketplace share of NMV grew to 19 percent in the first quarter and gross margins improved by 37.6 percent compared to 37 percent Q1 2018. Adjusted EBITDA loss improved to negative 26 million euros (29 million dollars), representing negative 9.8 percent of revenue, an improvement of 1.9 ppts.

Review of GFG’s segment-wise performance

GFG added that Q1 2019 was a strong period across APAC, driven by investment in the overall customer experience. Active customers grew by 18.3 percent to 3.6 million, while NMV per active customer also grew strongly by 13.2 percent on a constant currency basis. NMV of 116 million euros represented constant currency growth of 24 percent, while revenue of 92 million euros (103 million dollars) rose 19.2 percent on a constant currency basis and Q1 gross margin increased by 1.2 ppts. to 38.3 percent.

In the LATAM region, active customers reached 5.2 million, increasing 14.7 percent, while NMV per active customer increased marginally on a constant currency basis. NMV reached 110 million euros, an uplift of 18.4 percent, while LATAM achieved revenue of 80 million euros (90 million dollars) in Q1 and the gross margin decreased by 0.6 ppts. to 40.2 percent.

In CIS region, active customers grew by 9.6 percent reaching 2.8 million, with NMV per active customer growing 7.7 percent on a constant currency basis. Q1 NMV of 115 million euros represented a growth of 23.5 percent on a constant currency basis. Revenue reached 86 million euros (96.6 million dollars), with a constant currency growth of 13 percent, while gross profit margin increased by 3.3 ppts YoY to 37.4 percent.

Picture credit: Lamoda website