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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.”

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