Global Fashion Group Q2 profits rise to €183.7 million

Global Fashion Group has announced it has seen its gross profit rise 28% year on year to €183.7 million for the second quarter of the year, as a result of COVID-19 restrictions easing.

On a constant currency basis, revenue increased 18% year on year to €397.3m (€336.1m in the year prior). Adjusted EBITDA grew 22% to €11.6m and net merchandise value (NMV) increased by 24.9% to €610.1m.

All of GFG's regions continued to grow in Q2, with markets where COVID restrictions were lifted seeing the strongest growth driven by the recovery in occasionwear categories.

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 helped improve the Group's average order value which 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 Yves Saint Laurent. This reportedly helped drive a 60% growth in Marketplace NMV year on year, with participation of 37.7% and saw categories such as Beauty grow by 68%.

Continuing the Group's 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.

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."