Global Fashion Group Q3 net revenues rise

Global Fashion Group, the emerging markets fashion retailer set up by investors Kinnevik and Rocket Internet, reported its third-quarter operating losses narrowed somewhat while net revenue jumped by 19 percent.

Q3 net revenue rose to EUR 256.4 mln euro ($304.78 mln) vs 215.6 mln compared to Q3 2016. The adjusted  EBITDA loss was EUR 32.6 mln, with margins improving by 2.8 percentage points to (12.7) pct of net revenue. The adjusted EBITDA loss in Q3 2016 was EUR 33.3 mln.

“Operational efficiency gains more than offset the year on year investment in gross margin of (0.8) percentage points, as a result of targeted price investments in some of our key markets,” GFG said in its quarterly report.

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Kinnevik owns 35 percent of GFG, which comprises of the regional businesses Lamoda, Dafiti, Namshi, Zalora and The Iconic. The results excluded its unit Namshi, now majority owned by Emaar Malls.