The Global Fashion Group (GFG), the international online fashion and lifestyle retailer headquartered in Luxembourg, reported revenues of €264.6 million in the third quarter of its fiscal year ended on Sept. 30, representing a 16.9 percent increase on a constant-currency basis. Net merchandise value – the value of goods sold after actual and provisioned returns and rejections, excluding other revenue items such as delivery fees – rose by 22.7 percent at constant currencies to €289.5 million.
GFG operates four branded platforms across four continents: Dafiti (Latin America), Lamoda (Russia/CIS), The Iconic (Australasia) and Zalora (Southeast Asia). The group also holds a joint venture stake in Namshi for the Middle East.
GFG's gross profit margin in the quarter stood at 36.2 percent, down by 2.4 percentage points against the same quarter of last year. A stronger gross margin in Australasia was offset by continued price pressure in Southeast Asia, Latin America and Russia/CIS. However, the drop in the gross profit margin was more than compensated for by operational efficiency improvements, driven by optimized marketing investments and fixed-cost scale benefits across the group, the company said. Active customers for the group reached 11 million, one million more than at the start of the year, marking a growth of 15.8 percent on an annualized basis. Net orders grew by 25.1 percent, reflecting the ongoing growth in online retail in the group's end-markets and the increasing order frequency of its customer base.
By geographical region/platform, revenues in Latin America increased by 13.6 percent on a constant-currency basis to €82.3 million. In the Russia/CIS region, revenues increased by 9 percent in constant currencies to €85 million. The Russia/CIS region represented the largest revenue driver for the company. During the third quarter, Lamoda further developed its relationship with Inditex, now offering two Inditex brands – Pull&Bear and Oysho – through its marketplace to customers.
In the Australasia region, revenues were €55.2 million, representing a 35.3 percent growth from last year on a constant-currency basis. To support the continued growth of the Australasia region, The Iconic almost doubled the size of the warehouse space at its fulfilment center, increasing the storage capacity to four million items. In Southeast Asia revenues grew by 22.7 percent on a constant currency basis to €38.6 million. During the quarter, Zalora launched Revolve as a new brand fashion partner, with Hong Kong as a pilot market.