Global Fashion Group (GFG) is experiencing a robust recovery following the crisis, as evidenced by its preliminary Q2 results. The company is optimistic about achieving its second profitable quarter on an adjusted EBITDA basis and its first quarter with positive cash flow. GFG attributes this positive development to the strong rebound in customer demand since April and its strategic response to the Covid-19 pandemic.

Despite the initial impact of the virus in April, GFG foresees a constant currency basis net merchandise value (NMV) growth of over 20% for the quarter. This growth is driven by the addition of more than two million new customers. GFG operates various webstores in Asia Pacific, Latin America, and Eastern Europe, including well-known brands like The Iconic, Zalora, Dafiti, and La Moda. It offers a wide range of products under its own labels as well as through partnerships with major brands.

The projected adjusted EBITDA profitability of GFG can be attributed to a strong gross margin and significantly improved marketing efficiency. Additionally, the company has witnessed an increase in Marketplace share, which now stands at over 30%, up from 19% in Q2 2019. This growth is accompanied by approximately 90% Marketplace NMV growth, resulting from a shift in category mix and increased Marketplace SKU share.

Moreover, GFG’s profitability, disciplined working capital management, and capital expenditure have contributed to strong cash generation. As of June 30th, the company’s pro-forma cash balance is around €260m, representing a €50m increase since the end of March.

Christoph Barchewitz and Patrick Schmidt, Co-CEOs of GFG, express their satisfaction with the company’s financial performance and credit the success to the agility and adaptability of their teams across the globe. They emphasize the acceleration in customer acquisition, Marketplace share growth, and brand partnerships in recent months. GFG remains focused on seizing the substantial fashion and lifestyle e-commerce opportunities present in its markets.

The company has observed a robust recovery in sales since late April, with order intake increasing by over 30% since the beginning of May compared to the same period last year. This growth is particularly notable in CIS and LATAM, while APAC has experienced more moderate growth due to softer trading in Australia.

Useful links:
[Insert relevant link 1]
[Insert relevant link 2]