Global Fashion Group powers ahead as profitability improves
Global Fashion Group has announced a 16.9% increase in third-quarter group revenue in a constant currency basis to €264.6m, boosted by significant growth across all regions except Southeast Asia.
The group, which operates e-commerce platforms Dafiti, LaModa, Namshi and Zalora said revenue grew 3.2% in euro terms.
The Latin American region grew revenue by 13.6% on a constant currency basis, while the Russia/CIS region reported revenue growth of 9%. Russia and the CIS countries (including Ukraine, Kazakhstan and Belarus) are the largest revenue driver for the company, generating €85m in the third quarter, closely followed by Latin America with revenues of €82.3m.
Revenue also grew strongly in the Australasia region, up 35.5% to €55.2m, but declined by 22.7% on a constant currency basis in Southeast Asia (although it was up 21% in euro terms). Here, Global Fashion Group operates its Zalora brand, which introduced US cult brand Revolve as a new fashion partner, and launched four celebrity collaborations in the Philippines.
At 36.2%, gross profit margin for the third quarter was 2.4 percentage points lower than the previous year, but adjusted EBITDA margin improved from 3.5% to 8.1%.
The group rolled out several initiatives to boost growth during the period, including the opening of additional warehouse space in the Australasia region to increase its storage capacity, the addition of two Inditex brands, Pull&Bear and Oysho, to its Lamoda platform, and faster delivery in Brazil.
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