Global Fashion Group sales rise and losses narrow

Sales increased 15.9% to €603.2m (£551.1m) for the six months to June 30 as losses narrowed during the same period from €30.3m (£27.6m) to €28.8m (£26.3m).

The fashion retailer’s gross profit increased 39.7% to €239.4m (£218.7m) during the first half; however, this is down slightly compared to the same period the previous year when it increased 40.3%, albeit to €215.3m (£196.7m).

The online fashion platform, which owns ecommerce sites The Iconic, Zalora, Dafiti and Lamoda across Latin America, Asia Pacific and CIS, said it remains “confident in its outlook for the year” and expects revenue is expected to exceed €1.3bn, while “continuing to make further progress towards adjusted EBITDA breakeven”.

Co-chief executives Christoph Barchewitz and Patrick Schmidt said: “We have had a strong second quarter and made good progress against our strategic priorities.

“Through our focus on offering inspiring and seamless customer experiences from discovery to delivery, we attracted more customers, who purchased more often, and spent more on a per customer basis.

“As we scale, we are using our growing operational leverage to translate this growth into improving margins and continue our path to profitability.”