Global Fashion Group (GFG), a leading online fashion and lifestyle destination catering to Asia, Latin America, and Eastern Europe, has recently released its second-quarter financial report. While the company reported a slight decline of 1.8% in revenue, it was able to achieve its second profitable quarter and experienced growth in its net merchandise value (NMV). GFG is the owner of popular retail brands including Zalora, The Iconic, Dafiti, and Lamoda.

During the second quarter, GFG recorded revenue of €336.1 million, compared to €342.2 million from the same period last year. However, despite the drop in revenue, the net merchandise value (NMV) increased from €449.4 million to €488.3 million. This growth can be attributed to the record-breaking number of new customers, totaling 2.5 million, who shopped across GFG’s platforms during this time. The company has observed a notable shift from offline shopping to online shopping, especially during the global pandemic, which has contributed to the increase in customer traction.

Gross profit for the quarter reached €143.5 million, compared to €141.3 million in the previous year. Nevertheless, the company experienced a loss of €14.3 million, wider than the previous year’s loss of €9.3 million. Additionally, the adjusted EBITDA for the second quarter of fiscal year 2020 saw a loss of €3.2 million, in contrast to earnings of €9.5 million in the same period last year.

Christoph Barchewitz and Patrick Schmidt, the co-CEOs of GFG, expressed their satisfaction with the company’s performance during the quarter. They acknowledged the continuous growth of the fashion and lifestyle e-commerce sector in their target markets and its positive impact on GFG’s strategic objectives. They also emphasized the importance of health and safety measures during the ongoing global pandemic.

The marketplace model employed by GFG played a significant role in the company’s success during the quarter. With physical retail stores facing closures, GFG’s marketplace provided an opportunity for brand partners to establish a strong online presence. As a result, GFG’s top 30 brands experienced a threefold increase in their marketplace net merchandise value (NMV) compared to the previous year.

In spite of the challenges faced by the fashion industry due to the ongoing pandemic, Global Fashion Group has displayed resilience and adaptability in navigating these turbulent times. The company’s focus on e-commerce, the expansion of its customer base, and the success of its marketplace model have contributed to its second profitable quarter. As the fashion industry continues to evolve, GFG is well-positioned to take advantage of the growing demand for online fashion and lifestyle retail in its target markets.

Useful links:
1. Global Fashion Group Official Website
2. Zalora