Luxembourg – Global Fashion Group S.A. (“GFG”), the leading online fashion and lifestyle destination in growth markets, has delivered another profitable quarter with a strong set of results and substantial gross margin improvements.

Q2 2020 Q2 2021 H1 2020 H1 2021
Revenue €m 336.1 397.3 607.6 698.6
% Constant Currency Growth 11.3% 24.2% 9.9% 25.2%
% € Growth (1.8%) 18.2% 0.7% 15.0%
NMV €m 488.3 610.1 860.4 1,060.0
% Constant Currency Growth 22.8% 32.0% 18.6% 34.4%
% € Growth 8.6% 25.0% 8.9% 23.2%
Gross Profit €m 143.5 183.7 253.7 316.6
% Margin of Revenue 42.7% 46.2% 41.8% 45.3%
EBIT €m (9.3) (15.4) (50.5) (51.1)
Loss for the period €m (8.6) (17.5) (80.9) (65.1)
Adjusted EBITDA €m 9.5 11.6 (13.2) 0.1
% Margin of Revenue 2.8% 2.9% (2.2%) 0.0%

Q2 2021 Highlights

(growth rates at constant currency)

  • Net Merchandise Value* growth of 32.0% (Q2/20: 22.8%) 
  • Revenue growth of 24.2% (Q2/20: 11.3%)
  • Marketplace NMV grew by 60% yoy, achieving 37.7% participation (Q2/20: 31.1%) 
  • Gross Margin 46.2% (Q2/20: 42.7%) and Adj. EBITDA Margin 2.9% (Q2/20: 2.8%)
  • Strong Active Customer growth, up 15.8%, Order frequency increasing 9.6% with NMV per Active Customer up 14.9% to €127.3


Christoph Barchewitz and Patrick Schmidt, Co-CEOs of GFG, said: “It’s been another promising quarter for GFG despite the ongoing impact of the pandemic across most of our markets. As consumer spending continues to shift online, NMV grew 32%, Active Customers reached 17 million and we delivered 13 million orders. We have also seen a strong recovery in order frequency of 10% and a 60% growth in Marketplace. As e-commerce continues to grow at pace, the resilience of the GFG team and performance of our Marketplace business, continue to drive our strong results and we remain confident in achieving our long term targets.” 



GFG reaffirms its FY2021 guidance and expects to grow NMV by over 25%, delivering c. €2.3-2.4 billion in NMV, and around €1.5 billion of revenue, all on a constant currency basis. GFG expects Adjusted EBITDA to improve modestly and Capex investment will be around €60 million in FY2021. GFG’s outlook remains impacted by the elevated uncertainty associated with both the first and second degree impacts of COVID-19 across its markets.


Business Review

In Q2, GFG delivered NMV of €610.1 million, up by 32.0% yoy. This was driven by new customer growth and loyal customers returning to the platform and spending more. GFG now has 17.0 million Active Customers, up 15.8% yoy, with two million new customers shopping across GFG’s platforms during Q2. 

All of GFG’s regions continued to grow in Q2. Markets where COVID restrictions were lifted saw the strongest growth driven by the recovery in ‘going out’ categories. This was most evident in ANZ which saw NMV growth of 68% as a result of the post-pandemic recovery and soft trading last year. Across all other GFG regions, ‘lockdown’ categories continued to overperform. NMV growth in SEA was a strong 33% despite COVID restrictions and in CIS NMV grew 24% –  a good result following last year’s Q2 growth of 45%. LATAM grew 21% despite ongoing COVID-related disruption, heightened competition in the region and tougher comparables in the second half of the quarter. It performed exceptionally well in Q3 last year, growing 52% –  nearly double its then Q2 rate. 

Continued investment in ensuring a seamless and inspiring customer journey and the growth in GFG’s Marketplace supported the strong NMV performance across all markets. These strategies improved the Group’s average order value which alongside the improvement in order frequency, drove a +14.9% growth in NMV per Active Customer. 

Continuing the Group’s focus on delivering an even broader assortment, in Q2 GFG launched new categories and strategic brand partnerships including Country Road Group and Massimo Dutti, as well as geographic expansions for brands such as Kate Spade and YvesSaintLaurent. This helped drive a 60% growth in Marketplace NMV yoy, with participation of 37.7% and saw categories such as Beauty grow by 68%. 

The improvement to our retail margins and the growth of GFG’s Marketplace contributed to the 3.5pp increase in gross profit margin to 46%. As expected, the Group returned to pre pandemic levels of marketing investment, delivering a positive 2.9% Adjusted EBITDA margin for the quarter.

Continuing the Group’s sharp focus on sustainability, GFG achieved carbon neutrality across all of its operations which includes the use of 100% green energy across its 9 fulfillment centres and increasing the number of parcels delivered with zero emissions for the last mile. The Group also released its long term carbon mitigation strategy in Q2, marking a key milestone in the company’s journey to reduce its footprint and manage the transition to a lower carbon economy.  Progress towards GFG’s 2021 People and Planet Positive targets remains on track, with the company’s Science Based Targets set to launch later this year. GFG is also proud to be rolling out our adaptive range design to meet the needs of people with disabilities.


Key Performance Indicators

Q2 2020 Q2 2021 H1 2020 H1 2021
Active Customers m 14.6 17.0 14.6 17.0
% Growth 21.6% 15.8% 21.6% 15.8%
NMV / Active Customer € 126.2 127.3 126.2 127.3
% Constant Currency Growth (0.9%) 14.9% (0.9%) 14.9%
% € Growth (3.8%) 0.9% (3.8%) 0.9%
Number of Orders m 10.6 12.9 18.0 22.6
% Growth 18.8% 21.7% 13.9% 26.1%
Order Frequency 2.5 2.8 2.5 2.8
% Growth (3.6%) 9.6% (3.6%) 9.6%
Average Order Value € 46.1 47.4 47.9 46.8
% Constant Currency Growth 3.3% 8.5% 4.1% 6.6%
% € Growth (8.6%) 2.7% (4.4%) (2.3%)
*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.


KPI and financial definitions, including alternative performance measures are available in the 2020 Annual Financial 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 destination in growth markets across LATAM, CIS, SEA and ANZ.  From our people, to our customers and partners, we exist to empower everyone to express their true selves through fashion. Our four e-commerce platforms: dafiti, lamoda, ZALORA and THE ICONIC connect an assortment of international, local and own brands to more than one billion consumers from diverse cultures and lifestyles. GFG’s platforms provide seamless and inspiring customer experiences from discovery to delivery, powered by art & science that is infused with unparalleled local knowledge. Our vision is to be the #1 online destination for fashion & lifestyle in growth markets, and we are committed to doing this responsibly by being people and planet positive across everything we do.  (ISIN: LU2010095458.)