European e-commerce behemoth Global Fashion Group (GFG), which includes players that mainly operate in emerging markets, has announced its financial results in the second quarter of 2018. The group's net revenue is up 5.6 percent YoY to €297.8 million, with adjusted EBITDA at negative €6.8 million, compared to negative €12.1 million in the second quarter of 2017.
Lamoda, which mainly works on the Russian market, has shown €94.5 in net revenue, down from €101.3 in the same period last year. The group cited the year-on-year depreciation of the Russian Rouble as the main reason for the decline. The company's profit margin on of net revenue has increased by about 6 p.p. year-on-year to reach 49.7 percent.
Brazil-focused Dafiti has also had its net revenue down 1.4 percent year-on-year at €90.9 million. The company had faced some challenges in the second quarter, the group stated in a press release, from “a national truck driver strike in May, which brought the Brazilian road network to a halt for over a week” to the “continued depreciation of Brazilian Real.”
Zalora and The Iconic, operating in Southeast Asia and Australia, respectively, grew their total net revenue to €110.2 million, up 27.8 percent year-on-year.
“Gross Profit margin declined by 4.3 p.p. to 36.2 percent, driven by discounting at Zalora to clear old season stock,” GFG stated. “During the quarter The Iconic successfully entered the Kids category, covering baby, child and teen ranges, along with further expanding its existing assortment with the addition of Cotton On among several other brands.”