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GFG share gives way: Global Fashion Group slips operationally into the red

At the online fashion retailer Global Fashion Group, growth continued to decline in the third quarter.

In addition, the group, which focuses primarily on emerging countries, slipped operationally into the red, among other things because of investments in further growth.

In the months of July to September, the loss before interest, taxes, depreciation and amortization (Ebitda) adjusted for special effects was 7.5 million euros, as the company announced on Thursday in Luxembourg. A year ago, the Global Fashion Group (GFG) had operationally earned a little more than ten million euros.

The bottom line is that the loss has risen to 35 million euros – around 20 million euros more than a year ago. Sales increased in the third quarter by almost nine percent to 366 million euros. This means that the pace of growth was significantly lower than it was recently. In the nine months to the end of September, sales rose by 13 percent to just over a billion euros.

In 2021 GFG is aiming for sales of around 1.5 (previous year: 1.36) billion euros and a slightly better operating result than in the previous year. Last year adjusted earnings before interest, taxes, depreciation and amortization were just over 16 million euros. In order to achieve the goal, sales must pick up again significantly in the final quarter.

In addition, the business must become significantly more profitable. By the end of September, the operating loss totaled just over seven million euros. Experts surveyed by Bloomberg recently considered the annual targets to be achievable. Before the figures were presented, the analysts recorded by the news agency had expected an average turnover of 1.55 billion euros and an operating profit of almost 32 million euros for the year as a whole. On the stock exchange, however, the share was punished according to the numbers.

The share accelerated its downward slide, which had been going on for months. The price in XETRA trading temporarily fell by 14.18 percent to EUR 6.69. Since the record high of just under 15 euros in February, it has fallen by more than half. Despite the heavy losses in recent months, the share that has been listed on the stock exchange since summer 2019 currently costs significantly more than before the Corona crisis. Since the outbreak of the pandemic in early 2020, the company’s stock market value has increased by around 240 percent to just under 1.5 billion euros.

This means that the shares of the Global Fashion Group (GFG) are still among the biggest corona winners on the stock market. Only Westwing (Westwing Group) (570 percent), zooplus (480 percent), Verbio (VERBIO Vereinigte BioEnergie) (370 percent), Secunet (secunet Security Networks) (320 percent) have more securities listed in one of the German selection indices Percent) and HelloFresh (280 percent).

The online fashion retailer, forged over the past decade in the company of investors Kinnevik from Sweden and Rocket Internet, mainly focuses on emerging countries with the Russian platform Lamoda, Dafiti in Latin America, Zalora in Southeast Asia and The Iconic in Australia. GFG sells its own products as well as local and international brands via its four platforms, but also earns money as a marketplace for other retailers.

/ zb / stk

LUXEMBOURG (dpa-AFX)

Reference-www.finanzen.at

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