The Iconic has grown its sales and customer base in the third quarter while its parent company, Global Fashion Group (GFG), went backwards in every other region.
The online platform lifted net merchandise value (NMV) by 1.4 per cent year-on-year to $217.9 million in Q3 2026, according to its latest results. Active customers rose 1.7 per cent, and gross margin expanded 0.6 percentage points to 49.1 per cent.
Revenue was close to flat, up 0.2 per cent to $146 million, while gross profit reached $71.8 million. The Iconic noted its Australian dollar figures are unaudited, as GFG reports in euros.
The Iconic, which GFG reports as its ANZ segment, was the group’s only region to grow. GFG’s group NMV fell 5.4 per cent at constant currency to €243 million (~A$393 million), and revenue dropped 7.7 per cent. Group active customers declined 7.2 per cent to 6.9 million.
GFG also operates Zalora in Southeast Asia and Dafiti in Latin America.
Dafiti's NMV fell 9.7 per cent, with GFG pointing to weaker Brazilian consumer confidence, the World Cup and uncertainty ahead of Brazil’s presidential election. Zalora’s topline fell 16.6 per cent as the business continued a turnaround plan focused on profitability, though its gross margin rose 4.5 percentage points to 49.4 per cent.
Marketplace sales at The Iconic reached 37 per cent of its NMV, which the retailer credited for its margin gains. It has added more than 60 brands since April, including Aje, Missoni Home and Muscle Republic.
The Iconic also reported growth in its platform services. Its retail media arm, Iconic Media, now has more than 400 active brands and added sponsored carousels and sponsored content as advertising options for partners.
The platform also launched Returns into Fulfilled by The Iconic, which sends eligible returns from marketplace dropship partners directly to its fulfilment centre rather than to the brand’s warehouse. The Iconic reported this cuts the return-to-stock window from around 12 days to under two, with about 83 per cent of units returned through the service resold within a week.
Its Front Row loyalty program, which turned one in October, is now linked to more than 95 per cent of sales. The Iconic reported members redeeming rewards increased their spend by 25 per cent year-on-year.
At group level, GFG’s gross margin rose 0.9 percentage points to 47 per cent and adjusted EBITDA – earnings before interest, tax, depreciation and amortisation – lifted to €3.4 million, up from €0.9 million a year earlier. The group generated cash in the third quarter for the first time, with normalised free cash flow improving by €16 million year-on-year.
“Our continued focus on profitability and improving unit economics is delivering results,” GFG CEO Christoph Barchewitz said. “We expanded gross margin, improved adjusted EBITDA and moved close to normalised free cash flow breakeven on a last-twelve-months basis, despite global demand pressure.”
GFG noted October trading has been tougher than Q3, particularly in Brazil following the election. The group maintained its full-year guidance of a 0 to 4 per cent NMV decline at constant currency, but now expects to land towards the bottom of that range. It kept its adjusted EBITDA guidance of €18 million to €25 million.
Q4 is GFG’s largest trading quarter, historically accounting for around a third of annual NMV.