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Farfetch Q1 revenue increase 46.4 percent

By Prachi Singh

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Management

Farfetch, Facebook

Gross merchandise value (GMV) for the first quarter increased by 304.7 million dollars at Farfetch Limited to 915.6 million dollars, representing growth of 49.9 percent.

The company’s revenue increased by 153.6 million dollars to 485.1 million dollars, representing growth of 46.4 percent. The increase was primarily driven by 68.1 percent growth in digital platform revenue to 362.1 million dollars partially offset by lower brand platform revenue growth of 4.5 percent.

Commenting on the first quarter trading, José Neves, Farfetch founder, chairman and CEO said: “Farfetch is off to a tremendous start in 2021 with stronger than expected acceleration in the business in the first quarter and higher full-year growth expectations than initially anticipated.”

Highlights of Farfetch’s Q1 results

The company said, digital platform GMV increased by 295.1 million dollars to 790 million dollars, representing growth of 59.6 percent. Excluding the impact of changes in foreign exchange rates, digital platform GMV would have increased by approximately 54.3 percent.

The increase in digital platform services revenue of 54.4 percent was driven by 59.6 percent overall growth in digital platform GMV. Digital platform services first-party revenue increased 58.9 percent to 104.8 million dollars.

In first quarter, digital platform fulfilment revenue increased 151.7 percent, while in-store revenue increased by 25.4 percent to 10.7 million dollars and was primarily driven by the opening of additional New Guards portfolio brand stores over the past year, partially offset by temporary store closures and reduced foot traffic across our retail store network as a result of Covid-19 restrictions.

Operational performance of Farfetch in Q1

The company added that gross profit increased by 67.5 million dollars or 44 percent to 220.9 million dollars, while gross profit margin declined to 45.5 percent from 46.3 percent.

Profit after tax increased by 595.8 million dollars to 516.7 million dollars in first quarter 2021. First quarter diluted EPS was negative 28 cents and basic EPS was 1.44 dollars.

Adjusted EBITDA improved by 3.1 million dollars, to negative 19.2 million dollars, while adjusted EBITDA margin improved from negative 7.4 percent to negative 4.7 percent.

For the full year 2021, Farfetch expects digital platform GMV of 3.725 billion dollars to 3.865 billion dollars, representing growth of 35 percent to 40 percent, and adjusted EBITDA margin of 1 percent to 2 percent.

For the second quarter, the company forecasts digital platform GMV of 910 million dollars to 945 million dollars, representing growth of 40 percent to 45 percent, brand platform GMV of 50 million dollars to 60 million dollars and adjusted EBITDA of negative 23 million dollars to negative 25 million dollars.

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