GFG posts operating loss for Q1, profitability not in sight

GFG

Rocket Internet’s Global Fashion Group, GFG, said it reduced its losses for the first quarter of the year to €26 million.

GFG said its revenue for the period rose to €86 million compared to €81 million recorded in the year before.

Christoph Barchewitz and Patrick Schmidt, Co-Chief Executive Officers, said: “It has been a quarter of strong growth for GFG. We continue to build our online platform for fashion & lifestyle brands to access growth markets and now have over 10,000 brand partnerships. We are seeing strong growth in Active Customers as structural adoption of mobile and e-commerce continues across our markets.”

He added that “Our customers are also buying more, and more often, as we use technology and our unique distribution network to make buying fashion online a frictionless part of every-day life. We continue to invest in the overall customer experience and our operational infrastructure to underpin our continued growth and progress to profitability.”

It is still not clear when GFG would turn a profit, a journey that is taking longer than expected.