Farfetch posts Q1 sales increase of 8.1 percent

First quarter revenue at Farfetch Limited increased 41.6 million dollars to 556.4 million dollars, representing an increase of 8.1 percent.

The increase, the company said in a release, was driven by an increase in digital platform revenue of 6.5 percent to 421.5 million dollars, a 13.9 percent increase in brand platform revenue to 114.5 million dollars, and a 9.6 percent increase in in-store revenue to 20.5 million dollars.

GMV for the quarter increased 0.1 percent at 931.7 million dollars. Digital platform GMV decreased 1.2 percent or 9.9 million dollars to 799.7 million dollars.

Commenting on the company’s performance, José Neves, Farfetch founder, chairman and CEO, said: “Our first quarter results represent the first step towards achieving our plan for 2023, our year of execution, and demonstrate our strong execution in the face of continued macro headwinds.”

Highlights of Farfetch’s Q1 results

The company’s digital platform services revenue increased 7.7 percent driven by first-party revenue. Digital platform services first-party revenue increased 28.2 percent compared to the previous year, while digital platform services third-party revenue decreased 5 percent.

The company added that digital platform fulfilment revenue increased 1.7 percent, exceeding the overall digital platform GMV decline of 1.2 percent. Brand platform revenue increased 13.9 percent.

Farfetch reports Q1 loss

Gross profit for the quarter increased 10.1 million dollars or 4.4 percent to 240.6 million dollars in first quarter 2023, while gross profit margin decreased 160 bps to 43.2.

Loss after tax decreased 903 million dollars from a 728.8 million dollars profit in the first quarter of 2022 to a 174.3 million dollars loss in the first quarter. Basic EPS was negative 43 cents and diluted EPS was also negative 43 cents.

Adjusted EBITDA increased by 1 million dollars to a loss of 34.7 million dollars, representing a 2.9 percent improvement compared to first quarter 2022. Adjusted EBITDA margin improved by 90 bps from negative 8.2 percent in first quarter 2022 to negative 7.3 percent in first quarter 2023.

For the full year, the company expects group GMV of approximately 4.9 billion dollars, digital platform GMV of approximately 4.2 billion dollars, brand platform GMV of approximately 0.6 billion dollars and adjusted EBITDA margin of 1 percent to 3 percent.