GLOBAL FASHION GROUP BREAKS EVEN IN FOURTH QUARTER AND CONTINUES STRONG GROWTH03/03/2020
DGAP-News: GLOBAL FASHION GROUP BREAKS EVEN IN FOURTH QUARTER AND CONTINUES STRONG GROWTH
DGAP-News: Global Fashion Group S.A.
/ Key word(s): Preliminary Results/Annual Results
GLOBAL FASHION GROUP BREAKS EVEN IN FOURTH QUARTER AND CONTINUES STRONG GROWTH
Luxembourg, 3rd March 2020 - Global Fashion Group S.A. (GFG), the leading online fashion and lifestyle destination in growth markets, ends 2019 with its first profitable quarter and delivers on its guidance for the year.
Q4 2019 highlights
- The Group broke even for the first time, delivering Adjusted EBITDA of €0.7 million.
- Record Active Customer growth of 17.0% to 13.1 million and orders were up by 20.3% to 10.3 million.
- Net Merchandise Value (NMV) increased by 22.9% on a constant currency basis to €554 million, while revenue growth in the quarter was 17.7% on a constant currency basis to €417.7 million.
Full Year 2019 highlights
- NMV increased by 23.0% on a constant currency basis to €1,778 million, while revenue of €1,346 million was up 17.2% on a constant currency basis.
- Further progress to profitability, improving full year Adjusted EBITDA margin by 1.5ppt to (2.8)%, with three of four regions breaking even.
- Performance in line with full year guidance across NMV, revenue, Adj. EBITDA and capital expenditure.
Christoph Barchewitz and Patrick Schmidt, GFG Co-Chief Executive Officers, said:
GFG makes further progress on strategic priorities in becoming the #1 fashion and lifestyle destination in growth markets
The strong finish to the year was fuelled by a record seasonal events period including Black Friday and Cyber Week across all of GFG's markets as well as 10.10, 11.11 and 12.12 in Southeast Asia specifically. With more than 70 million site visits and over 2 million processed orders, this seasonal events period generated NMV growth of 36% year on year.
In 2019, GFG continued to expand its assortment across the Group and give over 1 billion consumers in its markets exclusive access to global brands and collaborations, as well as a locally relevant assortment. Most recently, the Group provided exclusive customer access to Ralph Lauren and GAP in Latin America, and Swatch in CIS, where the company also achieved a significant milestone in the rollout of its Beauty category through the launch of Estée Lauder. In APAC, further development of the modest fashion segment saw the launch of GFG's first male modest wear collection.
Through its focus on empowering customers to shop by their sustainability values, GFG introduced its first resale model on its ZALORA platform. It lists over 10,000 pre-loved items and gives over 200 million internet consumers across Southeast Asia the option to shop consciously. This is in addition to the launch of Considered at THE ICONIC and its first sustainable own brand, AERE earlier in 2019.
As the strategic partner of choice for fashion and lifestyle brands in its markets, GFG saw marketplace participation increase to 20.6% of NMV and gross margin continues to improve year-on-year as a result of the continued increase in marketplace share. GFG's Fashion Services continued to develop rapidly, with 60% more brand partners using GFG's B2B fulfilment services than at the end of 2018.
By addressing market specific needs through localised execution, operational developments further enhanced the delivery experience. In CIS, 35% of all orders shipped during the year were delivered through an expanded network of over 300 own pick-up points. In Brazil, construction of the new fulfilment centre is progressing well and on track to open in 2020.
Innovations in technology have continued to strengthen GFG's app-first approach, with more than 34 million downloads of GFG apps in 2019, generating over 50% of NMV. Customer purchase frequency was up by 5.1% to 2.6 times per year, with a 2.1% increase in average order value, driven by innovation and enhancements in app functionality.
In 2019, GFG invested €72 million of capex, broken down as to €49 million of property, plant & equipment addition - an elevated level as we deliver the new Brazilian fulfilment centre - and €23 million of intangible additions, including in-house technology capability.
The Group ended the year with available cash, including restricted cash and cash on deposit, of €300.8 million.
Guidance for FY 2020
The 2019 Annual Report will be published on 13th March 2020 on the GFG website. The report will also be available on the officially appointed mechanism for the central storage of regulated information in Luxembourg (OAM) referred to in Article 20 of the Luxembourg Transparency Law.
Forward looking information
About Global Fashion Group
For more information visit www.global-fashion-group.com
03.03.2020 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG.
|Company:||Global Fashion Group S.A.|
|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:||987837|
|End of News||DGAP News Service|