Global Fashion Group (GFG) shares have jumped 19% this morning after it announced that it is expecting a strong second-quarter after preliminary Q2 results.
The company announced that the preliminary results indicate that despite the negative impact of the COVID-19 pandemic, net merchandise value growth on a constant currency basis stayed above 20%, which was driven by more than two million new customers.
They also said it indicated an improved marketplace share of more than 30%. In Q2 last year it was 19%. Finally, GFG said that “Profitability, alongside disciplined working capital management and capital expenditure,” saw strong cash generation.
In the report, the firms Co-CEO’s Christoph Barchewitz and Patrick Schmidt said: Over the last few months customer acquisition, Marketplace share growth and brand relationships have been accelerated. We have continued to execute against our strategic priorities with a focus on capturing the significant fashion and lifestyle e-commerce opportunity in our markets.”
GFG’s share price exploded higher after the news. It closed yesterday at €2.71 per share and is now trading at €3.21 per share after the push upwards.
It is starting to retrace, but, I think if it can hold the €2.90 level, then we may see another move higher in the medium term.