Australian online marketplace The Iconic has reported a 13% drop in net merchandise value (NMV) in the fourth quarter of 2023 compared to the same time in 2022.
This follows an 18.4% drop in NMV recorded in the third quarter and a 9% drop in the second quarter.
It comes as The Iconic’s parent company, Global Fashion Group (GFG), recorded a total year-on-year drop in NMV of 14% for the full year of 2023. This is on a constant currency basis to around €1.3 billion (AU$2.14 billion).
As well as The Iconic marketplace, GFG also operates Zalora in Southeast Asia and Dafiti in Latin America, with both of these also recording NMV losses in the fourth quarter.
Dafiti dropped 12% in NMV for Q4 2023, while Zalora slipped by 18%.
GFG is expecting its adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) to be around breakeven. Meanwhile, its adjusted EBITDA margin for the full year 2023 is expected to be in the upper end of GFG’s guidance range of between negative 9% and negative 7%.
Based on preliminary figures, all other 2023 guidance metrics published on October 26 last year are expected to be met, including around €0.8 billion in revenue (AU$1.32 billion) and around €30 million in capital expenditure (AU$49.5 million).
GFG expects to end the year with €397 million in pro forma cash (AU$654.98 million) and €206 million in net pro forma cash (AU$339.87 million). The net position excludes the convertible bond liability and third-party borrowings.
All figures reported are preliminary and unaudited.