ADVERTISEMENT
Clothing & ShoesOnline & Digital

GFG welcomes first profitable year

The company also saw gross profit in Q4 increase to €183m (£158m) from €168.9m (£146m) the previous year

Global Fashion Group (GFG) has announced its first adjusted EBITDA positive year for FY20 at €16.4m (£14.1m), its first profitable year, and an increase from the previous year’s loss of €37.1m (£32m), which was attributed to a “strong” fourth quarter.

The company also saw gross profit in Q4 increase to €183m (£158m) from €168.9m (£146m) the previous year.

However, the group saw its revenue marginally decline in Q4 to €415.6m (£359.3m) down from €417.7m (£361m) while net merchandising value (NMV) grew 28.9% to €594.5 (£513.9m) from €553.8m (£478,7m) in 2019.

The fashion company, which operates multiple online and instore brands such as Missguided, Bershka, H&M, also announced its “ambitious target” to become a €10bn (£8.6bn) NMV business in the next seven-nine years.

Christoph Barchewitz and Patrick Schmidt, co-CEOs of GFG, said: “FY 2020 was GFG’s first profitable year, on an Adj. EBITDA basis. This milestone and our continued like-for-like NMV growth is a testament to our leading position as the only online fashion and lifestyle-focused platform operating at scale in our markets, where we have continued to act as brands’ partner of choice.

“Performance this quarter was driven by a record increase in Active Customers, as ecommerce adoption continues to accelerate. We are well positioned for the next phase of growth and to deliver on our ambition towards becoming a €10 billion NMV business in the next 7-9 years.”

Back to top button

Please disable your ad-blocker to continue

Ads are the primary way in which publishers generate the revenue needed to pay their staff. If we can't serve ads, we can't pay journalists to write the news.