- Prachi Singh |
Leading global platform for luxury fashion, Farfetch Limited said that Farfetch Marketplace continued to increase its share in the online personal luxury market, and all three geographic regions – Americas, EMEA and APAC – posted their best ever Q3 in terms of GMV. Gross merchandise value increased by 105.4 million dollars to 310 million dollars in third quarter, representing year-over-year growth of 51.5 percent. Platform GMV increased by 105.6 million dollars to 305.9 million dollars, an increase of 52.7 percent. Revenue increased by 45.3 million dollars to 132.2 million dollars, representing growth of 52.1 percent driven by higher platform services revenue and platform fulfilment revenue.
“As the leading technology platform for the 300 billion dollars luxury fashion industry, Farfetch delivered outsized growth with Platform gross merchandise value growing at approximately twice the rate of the online luxury market in the third quarter of 2018. We also broadened our network of brands and boutiques, and now department stores, as we continued to leverage our unique positioning to be the category leader for the luxury industry,” said José Neves, Farfetch Founder, CEO and co-Chairman in a statement.
Platform services revenues increase by 60.7 percent
The increases in GMV and Platform GMV, Farfetch said, were primarily driven by a 54.9 percent increase in number of orders from 427,700 to 662,500, which resulted from 42.4 percent growth in active consumers to 1.2 million, and an increase in the average number of orders per active consumer These factors were partially offset by a 3.4 percent decrease in AOV to 584.6 dollars over the same period.
Platform services revenue increased 40.1 million dollars or 60.7 percent year-over-year, primarily due to the increase in third-party Platform GMV, which was partially offset by a lower third-party take rate; as well as an increased mix of first-party Platform GMV.
Gross profit margin for the quarter decreased from 52.6 percent to 51 percent due to the increased mix of first-party Platform GMV, as well as lower fulfillment revenue per order. Adjusted EBITDA loss increased by 11.7 million dollars or 56.7 percent to 32.3 million dollars, while adjusted EBITDA margin remained flat at 29.3 percent over the same period.
Based on the positive performance of the Marketplace through the initial fourth quarter 2018 selling season, Platform GMV for the fourth quarter is expected to be within the range of 435 million dollars and 445 million dollars, higher than the company’s previous estimates.