Luxembourg: Global Fashion Group S.A. (GFG), the leading online fashion and lifestyle destination in growth markets, delivers strong constant currency* revenue and gross margin growth, its second Adj. EBITDA profitable quarter and record growth across Active Customers, and Marketplace.


Q2 2019 Q2 2020 H1 2019 H1 2020
Revenue €m 342.4 336.1 603.2 607.6
% Constant Currency Growth 16.5% 11.3% 15.9% 9.9%
% € Growth 15.0% (1.8%) 12.8% 0.7%
NMV €m 449.4 488.3 790.2 860.4
% Constant Currency Growth 22.7% 22.8% 22.4% 18.6%
% € Growth 21.1% 8.6% 18.8% 8.9%
Gross Profit 141.3 143.5 239.4 253.7
% Margin of Revenue 41.3% 42.7% 39.7% 41.8%
Loss before interest and taxes (EBIT) €m (14.3) (9.3) (65.8) (50.5)
Loss for the period €m (26.7) (8.6) (71.2) (80.9)
Adjusted EBITDA €m (3.2) 9.5 (28.8) (13.2)
% Margin of Revenue (0.9%) 2.8% (4.8%) (2.2%)


Q2 2020 Highlights

(growth rates at constant currency)

  • Revenue up 11.3% and Net Merchandise Value** (NMV) increased by 22.8% to €488.3m
  • Exceptional Marketplace NMV growth of 90% resulting in 31% share (Q2/19: 19%)
  • Adjusted EBITDA profitability of €9.5m, a margin of 2.8%, breaking even for the second time
  • Cash flow positive with pro-forma*** cash balance at 30 June of €263m, up €53m in the quarter
  • Record Active Customer growth of 21.6% to 14.6m, with NMV per Active Customer of €126.2
  • Orders grew by 18.8% to 10.6m, with a 3.3% increase in average order value, and customer frequency of 2.5 times per year


Christoph Barchewitz and Patrick Schmidt, Co-CEOs of GFG, said: “Another strong quarter for GFG. Fashion & lifestyle ecommerce continues to accelerate across our markets helping us execute against our strategic priorities even faster. While focusing on health and safety, we delivered our second profitable quarter, with record growth across Active Customers, Gross Margin and Marketplace. These results are a real testament to the agility of our business, and our people who have adapted seamlessly to new ways of working, while continuing to strengthen our position as the leading online fashion & lifestyle destination in growth markets.” 



COVID-19 continues to impact countries globally, and the economic and consumer outlook remains uncertain across GFG’s markets. After strong and profitable growth in the second quarter, the Company provides the following outlook for the Full Year 2020.

Constant currency NMV growth of c.20% delivering c.€1.9 billion NMV and c.€1.3 billion of revenue. GFG also expects to approach breakeven with respect to Adjusted EBITDA. Capex investment will be no more than €45 million. This guidance is based on the currency exchange rates at 30 June 2020.


GFG accelerates strategic priorities, delivering exceptional Marketplace growth

In Q2, the Group saw a record 2.5 million new customers shopping across its platforms, as the consumer shift from offline to online continued to gain traction. The acceleration of GFG’s Marketplace model allowed even more brand partners to build their presence online when much of brick & mortar retail was closed. This resulted in GFG’s top-30 brands tripling their Marketplace NMV YoY, driving a 90% constant currency increase in NMV against Q2/19 and an exceptionally high Marketplace share of 31% of NMV for the quarter.

The Group continued to work closely with its brand partners to adjust inventory intake and assortment to reflect the reality of lockdown conditions and customers spending more time at home. GFG observed and responded to, a marked shift away from occasion and business wear, to loungewear, casualwear and sportswear. In line with rapidly changing customer needs, GFG also accelerated the roll out of categories including Beauty, Home and Kids through a combination of the Retail and Marketplace business models.

Nearly 60% of Group NMV was generated through GFG apps in the quarter, reflecting the strength of GFG’s app-first approach and ongoing focus on technology innovations to further enhance the customer experience. This was also reflected in the total number of Orders in the quarter which exceeded 10 million, driven partially by new customers. Customer frequency remained around 2.5 times per year, despite the short term change in consumer shopping habits.

As delivery methods are still being impacted by social distancing measures, the Group remains focussed on delivering the most inspiring and seamless customer experiences by adapting to the changing circumstances, with a focus on safety. In CIS, Lamoda more than doubled courier delivery capacity to address the increased demand while pick-up points were temporarily closed. The new Brazil fulfilment centre is operational and being run alongside the existing facility as inventory and order volume is shifted and the automated storage system is tested and ramped up.

In the first half of 2020, GFG made good progress on its sustainability commitments, becoming the first online retailer in ANZ to launch order satchels made from 100% post-consumer recycled plastic, and in SEA, ZALORA was the first fashion ecommerce retailer to establish a comprehensive sustainability plan. GFG also endorsed the ILO-coordinated COVID-19: Action in the Global Garment Industry in recognition of the significant impact of the pandemic on workers in its supply chain.



Q2 2019 Q2 2020 H1 2019 H1 2020
Active Customers m 12.0 14.6 12.0 14.6
% Growth 14.6% 21.6% 14.6% 21.6%
NMV / Active Customer € 131.1 126.2 131.1 126.2
% Constant Currency Growth 7.1% (0.9%) 7.1% (0.9%)
% € Growth (0.2%) (3.8%) (0.2%) (3.8%)
Number of Orders m 8.9 10.6 15.8 18.0
% Growth 25.4% 18.8% 26.1% 13.9%
Order Frequency 2.6 2.5 2.6 2.5
% Growth 8.8% (3.6%) 8.8% (3.6%)
Average Order Value € 50.5 46.1 50.1 47.9
% Constant Currency Growth (2.2%) 3.3% (2.9%) 4.1%
% € Growth (3.5%) (8.6%) (5.8%) (4.4%)


*Euro reported results were significantly impacted by the devaluation of two of the Group’s main trading currencies, the Russian ruble and Brazilian real. Growth at constant currency provides the underlying performance of the Group.
**NMV is the value of both retail and Marketplace merchandise being sold through our platforms. Revenue, is the retail value plus the commission earned on a Marketplace transaction, and is therefore disconnected from true volume.
***Includes restricted cash of €20m related to the RCF facility in place at period end and approximately €10.5m drawn on local working capital facilities (Q1/20: €20m and €7.9m, respectively).


KPI and financial definitions, including alternative performance measures are available in the H1 2020 Interim Management Report.

This announcement contains forward-looking statements. Forward-looking statements should not be construed as a promise of future results and developments and involve known and unknown risks and uncertainties. Various factors could cause actual future results, performance or events to differ materially from those described in this announcement, and neither the Company nor any other person accepts any responsibility for the accuracy of the opinions expressed in this announcement or the underlying assumptions.

Global Fashion Group is the leading fashion and lifestyle retail destination in LatAm, CIS, ANZ and SEA. We connect over 10,000 global, local and own brands to a market of more than one billion consumers through four established e-commerce platforms: dafiti, lamoda, THE ICONIC and ZALORA. Through an inspiring and seamless customer experience enabled by our own technology ecosystem and operational infrastructure, we are dedicated to being the #1 fashion and lifestyle destination in our markets. With 17 offices and 10 fulfilment centres across four continents, GFG proudly employs a dynamic and diverse team with deep local knowledge and expertise. In 2019, GFG delivered over 34.6 million orders to 13.1 million Active Customers. (ISIN: LU2010095458.)