Global Fashion Group sees Q2 net merchandise value rising 11%

Global Fashion Group, the online fashion and lifestyle destination targeting growth markets, has delivered net merchandise value (NMV) of €792.1 million in the second quarter of 2022, up by 11.8 per cent year-on-year (yoy). The brand reported revenue growth of 10.8 per cent in the second quarter, with gross margin and adjusted EBITDA improvements.

The Dafiti, Lamoda and Zalora owner has 16.2 million active customers, down 4.6 per cent yoy reflecting subdued demand and the reduced levels of marketing investments. But NMV per active customer was up by 23.3 per cent as a result of higher order frequency, up 5.6 per cent and average order value, up 23.4 per cent. AOV was predominantly driven by inflation and the higher full-price mix, number of items and country mix. Marketplace NMV continues to scale faster than retail and increased by 24.2 per cent yoy reaching 39.4 per cent of NMV.

Co-CEOs Christoph Barchewitz and Patrick Schmidt said: “We delivered our results under difficult circumstances with all of GFG’s regions facing varying volatile environments, which our team adapted to well. Despite the challenges in the quarter, we have continued to deliver against GFG’s strategic priorities. Our marketplace share has grown to nearly 40 per cent of NMV, we continue to have a large active customer base of over 16 million and in the second quarter, our customers made nearly 12 million orders. We remain confident in our strategy and the long-term opportunity as we continue to develop our business as the leading online fashion and lifestyle destination in growth markets.”  

For the full year, the group expects to deliver NMV growth of 10-15 per cent, representing c.€2.9 to €3.0 billion, c.€1.9 billion of revenue, all on a constant currency basis and an adjusted EBITDA margin of 3 per cent to 5 per cent. Capex investment will be around €65 million in FY2022. All ranges provided are based on FX rates per the end of second quarter except for a planned RUB to EUR exchange rate of 70, the company said in a press release.

Across ANZ, SEA and LATAM, the company expects similar dynamics to the first half, and is no longer lapping pandemic peaks, which is offset by a more challenging macroeconomic backdrop. There are a number of scenarios for CIS and the outlook is based on a more conservative view for both sales and profitability. The firm's Lamoda operation has major exposure to Russia, Ukraine, Belarus and Kazakhstan.