Global Fashion Group posts Q3 revenue growth of 18.7 percent

Online fashion and lifestyle company Global Fashion Group S.A. (GFG) has said that net merchandise value (NMV) increased by 24.1 percent on a constant currency basis to 433.8 million euros (477.6 million dollars), while revenue growth was 18.7 percent on a constant currency basis as marketplace share continues to grow, now at 22 percent of NMV. The company’s active customers reached 12.4 million, growing by 15 percent with NMV per active customer also increasing by 6.9 percent to 134.9 euros (148.5 dollars).

Commenting on the trading update, Christoph Barchewitz and Patrick Schmidt, GFG’s Co-Chief Executive Officers, said in a statement: “We had a strong third quarter with a good step up in NMV. We continue to invest across our early stage markets, strengthening our growth and path to profitability even further.”

GFG forecasts NMV growth of 20 to 23 percent

The company added that number of orders grew by 20.8 percent to 8.5 million and customers are purchasing 7.5 percent more often at 2.6 times per year with a 2.8 percent increase in their average order value. Adjusted EBITDA margin was negative 2.8 percent, an improvement of 3.1 percentage points year-on- year, while gross margin for the quarter was 40.5 percent, improving 4.3pp on Q3 last year.

The group forecasts NMV growth between 20-23 percent on a constant currency basis, growing to 1.7-1.8 billion euros. The Group forecasts revenue to grow to above 1.3 billion euros, while continuing to make further progress towards adjusted EBITDA break-even. The company continues to forecast 2019 capex investment to be around 80 million euros, with 41 million euros invested to date.

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