Australian and New Zealand fashion platform The Iconic has recorded a one per cent decline in net merchandise value (NMV) for the third quarter of 2024 year-on-year, a further improvement on prior quarters.
The platform’s parent company Global Fashion Group shared the news in a trading update, adding that overall improvements in NMV at The Iconic and the group’s two other platforms - Dafiti in Latin America (LATAM) and Zalora in Southeast Asia (SEA) - allowed the company to raise its full-year guidance for 2024.
In the second quarter, The Iconic’s NMV - which is the net value of the total revenue generated - was down 8.4 per cent year-on-year, with that figure down from a peak of 16.4 per cent recorded in the first quarter of 2024.
Dafiti and Zalora also recorded falls of one per cent and 12 per cent, up from the second quarter when NMV for both platforms was down 11.1 per cent and 20.4 per cent respectively.
Overall, GFG generated €264 million (~A$430 million) in NMV, decreasing 4 per cent year-on-year.
Meanwhile, GFG’s third quarter adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) was negative 5 per cent, an increase of 5 percentage points year-on-year and hitting negative €8 million.
For the full-year 2024, GFG now expects a year-over-year decrease in NMV between 8 per cent and 12 per cent on a constant currency basis, narrowing from the previous range of a 5 per cent to 15 per cent decrease.
“This implies an NMV range of €1,100 to €1,160 million, which also reflects current exchange rate impacts, compared to the previous range of €1,100 to €1,200 million,” GFG reported.
For Adjusted EBITDA, GFG expects a range of negative €16 to €28 million which is an improvement from the prior range of negative €25 to €45 million.
“This positive outlook is primarily driven by operational efficiency efforts which have improved overall performance amid better consumer demand trends,” the company reported.
“The expansion of gross margin, combined with ongoing cost discipline, has resulted in a significant increase in Adjusted EBITDA margin for the third quarter.”
The Iconic’s sales improvements follow an ongoing masterbrand campaign that was launched in March this year, led by chief marketing officer Joanna Robinson.