Global Fashion Group (GFG), the world’s leading online fashion and lifestyle destination, delivered a net merchandise value (NMV), of EUR792.1 millions in the second quarter 2022. This represents an increase of 11.8 percent year-on-year. The brand reported a revenue increase of 10.8 percent in the second quarter. Gross margin and adjusted EBITDA also improved.
The group’s 16.2 million customers are down 4.6% yoy, reflecting the subdued market and reduced marketing investment. The NMV per customer increased by 23.3% as a result higher order frequency (up 5.6%) and the average order value (up 23.4%). AOV was primarily driven by inflation, a higher mix of full-price items, and a greater number of products. Marketplace NMV is growing faster than retail, increasing by 24,2% yoy to reach 39.4% of NMV.
“We delivered results in difficult circumstances. All of GFG’s region faced varying volatile environments to which our team was well adapted. We have delivered on GFG’s priorities despite the challenges of the quarter. We continue to have an active customer base with over 16 million people and our second quarter saw nearly 12 million orders. We are confident in the future of our strategy, and we will continue to grow our business in the growth markets as the leading online destination for fashion and lifestyle,” Christoph Barchewitz, and Patrick Schmidt, the co-CEOs at GFG and said.
The group is expecting to achieve a NMV growth between 10-15% for the entire year. This would represent c.EUR2.9-EUR3.0 billion in revenue and c.EUR1.9billion on a constant exchange rate basis. An adjusted EBITDA of 3% to 5% will be achieved. Capex investment is expected to be EUR65 million for FY2022. The company stated in a press statement that all ranges are based on the FX rate at the end of the second quarter, except for the planned RUB/EUR exchange rate of 70.
The company is expecting similar dynamics in ANZ, SEA, and LATAM. It is not chasing pandemic peaks anymore, but this is offset by a challenging macroeconomic background. For CIS, there are a variety of scenarios and the outlook is based upon a more conservative view on both sales and profits.
