GFG expects strong Q2 growth & positive adjusted EBITDA
July 10, 2020 - Luxembourg
Global Fashion Group (GFG), an online fashion and lifestyle destination, has announced that the company expects its second quarter (Q2) 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.
“We continue to put the safety of our people first and are humbled by this strong financial performance, which is a direct result of the agility and adaptability of the GFG teams around the world. Over the last few months customer acquisition, Marketplace share growth and brand relationships have been accelerated. We have continued to execute against our strategic priorities with a focus on capturing the significant fashion and lifestyle e-commerce opportunity in our markets,” Christoph Barchewitz and Patrick Schmidt, Co-CEOs of GFG, said in a press release.
Company’s preliminary results show that its net merchandise value (NMV) is above 20 per cent or the quarter despite the negative Covid-19 impact in April, driven by more than two million new customers. Also, there is an improved marketplace share of more than 30 per cent (Q2 19: 19 per cent) and around 90 per cent marketplace NMV growth as a result of category mix shift and increased Marketplace SKU share.
GFG reported that the company experienced a strong recovery in sales from late April, with order intake up over 30 per cent since the start of May compared to the same period last year. This was driven by strong performances in CIS and LATAM, while APAC saw more moderate growth as a result of soft trading in Australia.