Sparks - Global Fashion Group

Although a seasonally small quarter in the financial year, Q125 represents the second consecutive quarter of revenue growth for Global Fashion Group. This included continued growth in Latin America and in Australia and New Zealand (ANZ), but South East Asia remains weak. The group reported revenue growth of 0.9% (at constant currency) with fewer active customers and lower order frequency compensated for by an increase in average order value.

Global Fashion Group also reported a strong improvement in gross margin of 210bp, with an encouraging improvement in Retail and the ongoing greater contribution by Marketplace, which has a higher gross margin. This increase in gross margin was compounded by further cost savings to improve the adjusted EBITDA margin to -7.3%.

The results confirm that management’s strategy is providing improving key performance indicators and financials in the regions where changes were made first (ie Latin America and ANZ) but there is work to be done in South East Asia.