Australian fashion platform The Iconic has lifted its gross profit to $70.8 million in the third quarter of 2025, with gross margin up 150 basis points to 48.6 per cent compared to the same time last year.
This joins a 4.9 per cent lift in net merchandise value (NMV) for the wholly owned subsidiary of Global Fashion Group in Luxembourg, hitting $214.9 million. NMV is the net value of the total value of goods sold by a company.
Meanwhile, revenue is also up by 2.3 per cent to $145.7 million, with active customers booming by 4.7 per cent.
The Iconic CEO Jere Calmes said the lift in these core metrics proves that its strategy is working. This includes lifting delivery times outside of Sydney, with a 50 per cent slash to standard delivery times in Melbourne earlier this year.
The Iconic also introduced its first-ever loyalty program called Front Row, strategically rolled out ahead of the upcoming peak period. Front Row is expected to be a material driver of repeat purchase and customer lifetime value in Australia and New Zealand.
“The platform is attracting customers and brand partners, and we’re translating that into improved margins and positive NMV growth in ANZ, proof we’re building a more scalable, profitable business,” Calmes said. “We will keep investing in faster delivery, AI and of course our new loyalty program, The Iconic Front Row, to turn momentum into sustained growth.”
Despite the boom for The Iconic, it was enough to swing total NMV for Global Fashion Group in the third quarter to green, but is an improvement on prior quarters. Total NMV dropped by just 0.4 per cent, hitting €239 million (~A$425 million). That drop is on a constant currency basis.
GFG also manages two other fashion platforms, Zalora in Southeast Asia and Dafiti in Latin America. Dafiti reported a 3.8 per cent lift in NMV, while Zalora continues to be challenged with an NMV decline of 15 per cent.
According to GFG, the overall stabilisation of NMV was supported by improving customer trends. The active customers decline slowed to a 2.3 per cent decrease, and order frequency increased 0.4 per cent.
Despite a slip in NMV globally, GFG’s gross margin lifted by 130 basis points to 46.1 per cent, primarily due to higher shares of marketplace and platform services.
The margin expansion combined with cost reductions contributed to adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) margin improving 440 basis points to 0.6 per cent. GFG’s adjusted EBITDA improved by €20 million year-to-date and turned positive at €2.4 million for the last twelve months.
GFG CEO Christoph Barchewitz said the overall profitability improvements this quarter are a result of continued gross margin expansion and cost discipline.
“We have also been encouraged by healthier customer indicators, which are supporting our topline recovery. With our peak trading quarter underway, we are well positioned for our Q4 sales events to ensure a strong close to the year.”