UK retailer Farfetch posts GMV of $931.7 mn in Q1 FY23

The brand platform GMV saw an increase of 10 per cent YoY, rising from $99.7 million in Q1 FY22 to $109.7 million in Q1 FY23. Farfetch attributed this rise to a larger portion of the spring-summer collections being shipped in Q1 FY23 than in the same period the previous year.

In-store GMV also experienced a modest 3.8 per cent YoY growth, from $21.5 million in Q1 FY22 to $22.3 million in Q1 FY23, the company said in a press release.

Farfetch's revenue displayed growth, increasing $41.6 million YoY from $514.8 million in Q1 FY22 to $556.4 million in Q1 FY23, marking an increase of 8.1 per cent. This was primarily driven by a 6.5 per cent increase in digital platform revenue, a 13.9 per cent increase in brand platform revenue, and a 9.6 per cent increase in in-store revenue.

The company’s brand platform revenue saw a higher-than-proportional increase compared to the brand platform GMV due to a net economic benefit of $4.8 million from the Reebok partnership that commenced in March 2022.

However, the gross profit margin decreased by 160 basis points YoY to 43.2 per cent, due to a decline in the digital platform's gross profit margin, partially offset by increases in the brand platform and in-store gross profit margins.

The company reported a loss after tax of $174 million and an adjusted EBITDA of negative $35 million for Q1 FY23. In addition, selling, general, and administrative expenses saw a YoY increase of $27.4 million or 7 per cent, from $391.4 million in Q1 FY22 to $418.8 million in Q1 FY23.

ALCHEMPro News Desk (DP)