Luxembourg firm Global Fashion Group's third quarter NMV grows 14%

12 Nov '21

2 min read

Pic: Global Fashion Group

Third quarter (Q3) revenue at Global Fashion Group (GFG), a leading online fashion and lifestyle destination, increased by 8.8 per cent to €366.2 million, while net merchandise value (NMV) grew 13.7 per cent to €572.2 million over the corresponding period of prior fiscal. However, the group’s loss for the quarter widened to €34.9 million from €14.6 million in Q3 FY20.

“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,” Christoph Barchewitz and Patrick Schmidt, co-CEOs of GFG, said in a press release.

Gross profit for the three-month period totalled to €167.6 million (€149.5 million). Luxembourg-based fashion firm’s earnings before interest and taxes reported a loss of €29.5 million (loss: €8.3 million). Adjusted EBITDA (earnings before interest, taxes, depreciation, and amortisation) too recorded a loss of €7.5 million compared to earnings of €10.3 million.

By geography, the revenue from Latin America slipped 15.9 per cent to €82.8 million, affected by the strong comparative and a weaker macroeconomic environment, while Commonwealth of Independent States (CIS) sales advanced by 24.1 per cent to €130.4 million. Moreover, Southeast Asia (SEA) sales almost remained unchanged to €62.6 million, whereas Australia New Zealand sales expanded 26.3 per cent to €90.4 million.

In its outlook for FY21, GFG reaffirmed its guidance and expects to NMV to grow by over 25 per cent to €2.3-2.4 billion, while revenue is expected to reach €1.5 billion.

“We continue to see strong improvement across all of our customer metrics, with an 11 per cent increase in order frequency and 15 per cent growth in NMV/Active Customer. In a market with over 1 billion potential consumers where e-commerce adaptation continues at pace, we remain confident of the opportunity ahead,” Barchewitz and Schmidt concluded.

Fibre2Fashion News Desk (JL)