GFG sees continuous growth in customer base during Q1
The active customer base for Global Fashion Group (GFG), a leading online fashion and lifestyle destination, reached 11.5 million in the first quarter of fiscal 2019. On a constant currency basis, during the reported period, the company witnessed Net Merchandise Value (NMV) growth by 22.0 per cent year on year to €341 million on a constant currency basis.
Revenue reached €261 million, growing 15.1 per cent on a constant currency basis in the first quarter of 2019. The company delivered this growth inside our disciplined financial model, using growing scale and operating leverage to continue making progress towards break-even.
“It has been a quarter of strong growth for GFG. We continue to build our online platform for fashion & lifestyle brands to access growth markets and now have over 10,000 brand partnerships. We are seeing strong growth in Active Customers as structural adoption of mobile and e-commerce continues across our markets. Our customers are also buying more, and more often, as we use technology and our unique distribution network to make buying fashion online a frictionless part of every-day life. We continue to invest in the overall customer experience and our operational infrastructure to underpin our continued growth and progress to profitability,” Christoph Barchewitz and Patrick Schmidt, co-chief executive officers, said.
In the CIS region, active customers grew by 9.6 per cent reaching 2.8 million, with NMV per ctive Customers rose 7.7 per cent on a constant currency basis. NMV of €115 million represented a growth of 23.5 per cent from the same time last year on a constant currency basis.
Revenue reached €86 million in the first quarter of 2019, with a constant currency growth of 13.0 per cent. The gross profit margin increased by to 37.4 per cent. Contributing to this is continued focus and investment in our premium brand assortment, which saw the Average Selling Price (ASP) increase significantly in line with strategy.
In APAC, the first quarter saw a strong period, driven by investment in the overall customer experience. Active customers gained by 18.3 per cent to 3.6 million. NMV per active customer also increased strongly by 13.2 per cent on a constant currency basis.
The first quarter saw NMV reach €110 million in the Latin American region, an uplift of 18.4 per cent from Q1 2018 on a constant currency basis. Posting revenue of €80 million in Q1, the gross margin decreased to 40.2 per cent driven by country mix.
Monday, 20 May 2019