Farfetch Q1 revenues increase but losses widen

Farfetch Limited, for its first quarter ended March 31, 2019 reported increase in gross merchandise value (GMV) by 126.6 million dollars to 419.3 million dollars, representing year-over-year growth of 43.2 percent. Platform GMV increased by 126.1 million dollars to 414.7 million dollars, up 43.7 percent. Revenue for the quarter increased by 48.4 million dollars to 174.1 million dollars, representing growth of 38.6 percent driven by 43.2 percent growth in platform services revenue to 141.8 million dollars, 22.9 percent growth in platform fulfilment revenue to 27.7 million dollars and 12.8 percent growth in in-store revenue to 4.5 million dollars.

Commenting on the company’s first quarter, José Neves, Farfetch Founder, CEO and Co-Chair said in a statement: “Farfetch enjoyed excellent growth in first quarter 2019, with platform GMV rising 44 percent to 415 million dollars, or approximately 50% growth on a constant currency basis. This outpaced both our expectations and, by some distance, growth in the online personal luxury goods sector as we continued to gain market share.”

Review of Farfetch’s first quarter trading

The company said, excluding the impact of changes in foreign exchange rates, platform GMV would have increased by approximately 50 percent. The company added that increases in GMV and platform GMV were primarily driven by an increase of 64.3percent in active consumers to 1.7 million, and increases in average number of orders per active consumer and total number of orders on the Farfetch Marketplace. Other contributing factors include an increase in the number of clients supported by our white-label solution, growth in transactions through these managed websites, and the addition of Stadium Goods, its sneaker and streetwear marketplace.

Adjusted EBITDA loss increased by 6.6 million dollars or 27.8 percent to 30.2 million dollars, while adjusted EBITDA margin improved from negative 22.9 percent to negative 20.7 percent over the same period. Loss after tax increased by 58.5 million dollars or 115.4 percent to 109.3 million dollars.

For second quarter, Farfetch expects platform GMV to grow approximately 40 percent – 42 percent and adjusted EBITDA margin to be approximately negative 19 percent to negative 21 percent. For full year 2019, platform GMV is expected to grow approximately 41 percent, and adjusted EBITDA margin is expected to be approximately negative 16 percent to 17 percent.

Picture: Farfetch website