UK's Farfetch's GMV up 1.3% in Q2 FY22

Digital platform GMV performance in the second quarter of 2022 reflects continuing headwinds from suspension of trade in Russia, where trade has ceased since March 2022, and China, where regional COVID-19 restrictions continue to impact orders in Mainland China. Additionally, while the shift to full-price continued in the second quarter of 2022, this was more than offset by a decline in markdown sales.

"At Farfetch our mission is to be the global platform for luxury. This week we celebrated a major step towards that mission, with a transformational deal advancing our Luxury New Retail (LNR) partnership with Richemont. Since the acquisition of Browns, through the launch of F90 with Gucci, partnerships with Chanel and Harrods, our China JV with Alibaba, Richemont and Kering, and more recent signings of Neiman Marcus and Salvatore Ferragamo, to name just some of the milestones, we have built upon this vision relentlessly - year after year - and this week we celebrate a landmark partnership where we are partnering with Richemont to deliver LNR to their entire group, with their Maisons and YNAP adopting Farfetch Platform Solutions and also joining the Marketplace. This is our long-term vision coming to life,” José Neves, Farfetch founder, chairman and CEO, said.

"And while our eyes are fixed on our North Star, our feet remain planted firmly on the ground. We are navigating a volatile macro environment adeptly, continuing to post growth compounding on what has been a tremendous 3-year run for Farfetch, a period that saw our business double as measured by our GMV. This makes me extremely bullish for 2023, a year when we will lap our closure of our Russia operations, expect China to turn into a tailwind, and will start to see the fruits of large deals signed this year with Reebok, Neiman Marcus Group and Salvatore Ferragamo. These 2023 vectors of growth, combined with the rationalisation of costs we are implementing this year, make me very confident about our 2023 top line, profitability and cash generation. I look forward to discussing all of this as well as our longer term plans in an upcoming Capital Markets Day, which we expect to take place before the end of the year,” explained Neves.

Revenue increased by $56.0 million year-over-year from $523.3 million in the second quarter of 2021 to $579.3 million in second quarter 2022, representing year-over-year growth of 10.7 per cent. The increase was driven by a 60.3 per cent increase in brand platform Revenue to $116.6 million, a 52.0 per cent growth in in-store revenue and an increase in digital platform revenue of 0.7 per cent. Excluding the impact of changes in foreign exchange rates, revenue would have increased 20.7 per cent year-over-year.

“In the second quarter of 2022, Farfetch demonstrated our ability to navigate macro challenges while delivering robust underlying growth and managing resources effectively. We achieved revenue growth, on a constant currency basis, of 21 per cent year-on-year, and expanded gross profit margins with strong unit profitability. We remain focused on continuing to navigate the near-term macro environment, and I am excited about the multiple levers of growth and drivers of profitability in 2023 and beyond,” Elliot Jordan, CFO of Farfetch, said.

ALCHEMPro News Desk (RR)