Global Fashion Group (GFG), an international e-tailer, has announced impressive financial results for the first quarter of its new fiscal year. Despite experiencing a dip in March, the company managed to achieve a 13.1% increase in net merchandise value (NMV) on a constant currency basis, reaching €372.1m. This growth can be attributed to the higher demand for loungewear as consumers adapted to the lockdown and social distancing measures imposed during the pandemic. Revenue also saw a positive rise of 8.1% on the same basis, totaling €271.4 million.

One notable trend observed during this period was the increase in the Marketplace’s contribution to Q1 NMV, accounting for 25% of transactions. Adjusted Ebitda reflected a loss of €22.7 million, a slight improvement compared to the previous year’s loss of €25.5 million. However, the company managed to achieve growth in two crucial areas – order numbers increased by 7.5% to 7.4 million, and the number of active customers rose by 15.5% to 13.3 million.

Expressing their satisfaction with GFG’s performance, Co-CEOs Christoph Barchewitz and Patrick Schmidt stated that the company had successfully delivered on its strategic priorities and improved profitability. They also highlighted GFG’s readiness to meet the surging demand in e-commerce and the company’s focus on capitalizing on growth opportunities in Asia, Latin America, and Eastern Europe.

Despite the challenges posed by the Covid-19 pandemic, GFG has witnessed signs of recovery in customer demand in recent weeks. As the needs of customers have evolved during the ongoing crisis, there has been a noticeable surge in demand for sportswear, wellness products, and loungewear, while categories like dresses and formalwear have experienced declines. In response to these changing preferences, GFG has adjusted its product range to include essential categories that cater to customers’ well-being and lifestyle needs within the confines of their homes.

Moreover, GFG has successfully acquired a significant number of new customers, with over 650,000 first-time users in April alone. This highlights the growing confidence and trust in GFG’s services during the pandemic. In light of the accelerating shift from offline to online retail, GFG is prioritizing innovation in technology and strengthening its app-first approach to meet the needs of customers who are spending more time at home. Currently, the company’s apps generate 58% of NMV, a noticeable increase from the previous year’s 46%.

In conclusion, GFG has demonstrated resilience and adaptability in the face of the Covid-19 pandemic. By recognizing the changing demands of customers and making necessary adjustments to its product range, the company has managed to maintain a solid performance. With their focus on innovation and capturing growth opportunities in key regions, GFG is well-positioned to navigate through these challenging times and continue its upward trajectory.

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