Farfetch Reports Growth in Revenue and GMV

Farfetch Reports Growth in Revenue and GMV

Farfetch Reports Growth in Revenue and GMV

For the second quarter, Farfetch Limited’s GMV increased by $12.6 million from $1,007.8 million, up 1.3%.

Revenue increased by $56 million to $579.3 million, a growth of 10.7%. The increase, the company said, was driven by a 60.3% increase in branded platform revenue to $116.6 million, 52% growth in store revenue and an increase in 0.7% of digital platform revenue.

Commenting on the second quarter trading, José Neves, Founder, Chairman and CEO of Farfetch, said, “At Farfetch, our mission is to be the global platform for luxury. From the acquisition of Browns, to the launch of F90 ​​with Gucci, partnerships with Chanel and Harrods, our Chinese joint venture with Alibaba, Richemont and Kering, and the more recent signings of Neiman Marcus and Salvatore Ferragamo, to name a few. some of the milestones, we have built tirelessly on that vision and this week we are celebrating a historic partnership where we are in partnership with Richemont.

Farfetch Q2 performance review

GMV’s digital platform decreased $30.3 million to $883.1 million in the second quarter, a decline of 3.3%.

The company added that the performance of the GMV digital platform reflects continued headwinds from the suspension of trade in Russia, where trade has ceased since March 2022, and China, where regional Covid-19 restrictions continue to falter. have an impact on orders in mainland China. Additionally, as the shift to full price continued into the second quarter, this was more than offset by lower markdown sales.

Branded platform GMV increased year-over-year by 47.3% to $107.1 million or increased 68.4% excluding the impact of changes in foreign exchange rates.

In-store GMV increased 38.8% to $30.2 million, driven by additional store openings of New Guards brands in the last twelve months as well as growth in existing stores.

“In the second quarter of 2022, Farfetch demonstrated our ability to meet macroeconomic challenges while delivering robust underlying growth and managing resources effectively. We achieved revenue growth, at constant currency, of 21% year-on-year and increased our gross profit margins with strong unit profitability,” added Elliot Jordan, CFO of Farfetch.

Digital platform services revenue increased 2% driven by first party revenue. First-party digital platform services revenue increased 8.7%, primarily due to increased markdown sales of Browns products in the marketplace. Third-party digital platform services revenue decreased 2.5%.

Digital platform fulfillment revenue declined 4.7%, above the overall digital platform GMV decline of 3.3%. Branded platform revenue grew 60.3%.

Farfetch profit drops, targets adjusted EBITDA at breakeven

After-tax profit fell $20.2 million to $67.7 million in the second quarter, with gross profit increasing by $37.6 million. Basic EPS was 18 cents and diluted EPS was negative 50 cents.

Adjusted EBITDA decreased by $3.6 million to minus $24.2 million and adjusted EBITDA margin decreased from minus 4.7% to minus 4.9%.

For the full year, Farfetch expects digital platform GMV growth of 0% to 5%, branded platform GMV growth of 0% to 10%. The company is targeting adjusted EBITDA at breakeven.

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