Global Fashion Group S.A.: GLOBAL FASHION GROUP DELIVERS STRONG SECOND QUARTER08/21/2019
DGAP-News: Global Fashion Group S.A.: GLOBAL FASHION GROUP DELIVERS STRONG SECOND QUARTER
DGAP-News: Global Fashion Group S.A. / Key word(s): Half Year Results/Quarterly / Interim Statement
GLOBAL FASHION GROUP DELIVERS STRONG SECOND QUARTER
Luxembourg, 21st August 2019 - Global Fashion Group S.A. (GFG), the leading online fashion and lifestyle destination in growth markets, has delivered strong second quarter and first half results, in line with the guidance set out as part of the recent IPO.
- Net Merchandise Value (NMV) increased 22.7% on a constant currency basis to EUR449m. Revenue growth was 16.5% as Marketplace share expanded to 19% of NMV.
- Active Customers grew by 14.6% to 12.0 million, with NMV per Active Customer up 7.1% to EUR131, underpinned by GFG's leading customer experience.
- Number of orders grew by 25.4% to 8.9 million and customers are purchasing 8.8% more often at 2.6 times per year.
- Profitability is on track with Adjusted EBITDA margin of (0.9)%.
"We have had a strong second quarter and made good progress against our strategic priorities. Through our focus on offering inspiring and seamless customer experiences from discovery to delivery, we attracted more customers, who purchased more often, and spent more on a per customer basis. As we scale, we are using our growing operational leverage to translate this growth into improving margins and continue our path to profitability."
Marketplace participation increased to 19% of NMV, up from 14% in Q2 last year, further cementing GFG as the strategic partner of choice for fashion and lifestyle brands in its markets. GFG's Fashion Services business has developed rapidly, with significant uplift in the number of brands that are now provided with B2B fulfilment services.
Operational developments in the first half of 2019 have enhanced the delivery experience offered in South East Asia and CIS. 'Zalora Now', a subscription programme including free next day delivery, was launched in Indonesia, while the own and third party pick-up point network in CIS grew to cover over 12,000 locations. In Brazil, construction of the new fulfilment centre is well-progressed and on track to open in 2020.
Technology innovations focused on app functionality have delivered new levels of customer engagement and strengthened GFG's app-first approach. Our apps generated 47% of NMV in Q2, up 7 percentage points compared to the same period last year.
Gross margin for Q2 was 41.3% and Adjusted EBITDA margin was (0.9)% in the Quarter. As planned, during the year GFG delivered leverage on marketing, technology and admin costs as the business grew.
GFG remains confident in its outlook for the year and expects to deliver NMV constant currency growth of 20-23%, and achieving NMV of EUR1.7-EUR1.8bn. Revenue is expected to exceed EUR1.3bn, whilst continuing to make further progress towards Adjusted EBITDA breakeven. Having invested EUR25m in the first half of the year, we now expect 2019 capex to be around EUR80m due to phasing benefits and the results of continuously optimising our ongoing investment plans.
KPI and financial definitions are available in the 2019 Interim Management Report.
Forward looking information
About Global Fashion Group
|Company:||Global Fashion Group S.A.|
|Grand Duchy of Luxembourg|
|Phone:||+352 691 20 56 54|
|Listed:||Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Dusseldorf, Tradegate Exchange; Luxembourg Stock Exchange|
|EQS News ID:||860473|
|End of News||DGAP News Service|