Global Fashion Group, the online fashion and lifestyle destination that targets growth markets, has reported a substantial increase in net merchandise value (NMV) for the second quarter of 2022. The brand recorded NMV of €792.1 million, representing an impressive year-on-year growth of 11.8%. Additionally, the company achieved a 10.8% increase in revenue, with improvements in gross margin and adjusted EBITDA.

Despite a 4.6% decrease in active customers compared to the previous year, which can be attributed to subdued demand and reduced marketing investments, the NMV per active customer saw a remarkable increase of 23.3%. This was mainly driven by a higher order frequency (up 5.6%) and average order value (up 23.4%). Factors such as inflation, a higher full-price mix, a greater variety of items, and a diverse country mix contributed to the increase in average order value. Notably, the marketplace NMV experienced even faster growth compared to retail, with a year-on-year increase of 24.2%, amounting to 39.4% of the total NMV.

With regard to the company’s performance, Co-CEOs Christoph Barchewitz and Patrick Schmidt expressed their satisfaction, particularly emphasizing the growth of the marketplace, which now accounts for nearly 40% of the NMV. Despite challenges, Global Fashion Group maintains a strong customer base of over 16 million active customers, who placed nearly 12 million orders during the second quarter. The company remains confident in its strategic direction and sees significant long-term opportunities as it aims to solidify its position as the leading online fashion and lifestyle destination in growth markets.

Looking ahead, Global Fashion Group expects to achieve NMV growth of 10-15% for the full year, equating to approximately €2.9 to €3.0 billion in NMV and around €1.9 billion in revenue, on a constant currency basis. Furthermore, the company anticipates an adjusted EBITDA margin between 3% and 5%, with plans to invest approximately €65 million in capital expenditure for the year. While the outlook for the ANZ, SEA, and LATAM regions is anticipated to be similar to the first half, without the challenge of comparing sales to pandemic peak levels, a more challenging macroeconomic environment may pose a potential offset. In the CIS region, Global Fashion Group acknowledges various scenarios, and its sales and profitability projections are based on a more conservative viewpoint, considering its operation in Russia, Ukraine, Belarus, and Kazakhstan.

In conclusion, Global Fashion Group has demonstrated impressive growth in net merchandise value and revenue for the second quarter of 2022. Despite obstacles in customer demand and marketing investments, the company’s strategic focus on the marketplace has yielded positive results, leading to higher NMV per active customer. With a solid customer base and a clear vision for the future, Global Fashion Group remains confident in its ability to establish itself as a dominant online fashion and lifestyle destination in growth markets.

Useful links:
Global Fashion Group Official Website
Global Online Shopping Market Size Statistic