In the second quarter, Global Fashion Group (GFG) delivered NMV of 610.1 million euros, up by 32 percent, which the company said was driven by new customer growth and loyal customers returning to the platform and spending more. Revenue rose 24.2 percent to 397.3 million euros.
GFG now has 17 million active customers, up 15.8 percent, with two million new customers shopping across GFG’s platforms during Q2. GFG expects that adjusted EBITDA will improve modestly.
Commenting on the Q2 performance, Christoph Barchewitz and Patrick Schmidt, Co-CEOs of GFG, said in a statement: “It’s been another promising quarter for GFG despite the ongoing impact of the pandemic across most of our markets. The resilience of GFG and the performance of our marketplace business continue to drive strong results. We remain confident that we will achieve our long-term targets as e-commerce continues its rapid growth.”
All GFG’s core markets perform well in Q2 The strongest growth was seen in markets where COVID restrictions were removed. This was due to the recovery of ‘going out” categories. This was evident in ANZ, which saw NMV growth at 68 percent due to soft trading and the recovery from the pandemic. In all other GFG regions, the ‘lockdown” categories performed well.
NMV growth in SEA was a 33 percent despite Covid restrictions and in CIS NMV grew 24 percent, following last year’s Q2 growth of 45 percent. LATAM grew by 21 percent.
In the second quarter, GFG launched new categories and strategic brand partnerships including Country Road Group and Massimo Dutti, as well as geographic expansions for brands such as Kate Spade and YvesSaintLaurent. With participation of 37.7 per cent, this helped to drive 60 percent market growth and saw beauty categories grow by 68%.
The improvement to the company’s retail margins and the growth of GFG’s marketplace contributed to the 3.5pp increase in gross profit margin to 46 percent, and delivered a positive 2.9 percent adjusted EBITDA margin for the quarter.