×
161
Fashion Jobs
LIFESTYLE BRANDS
Area Manager-Projects Execution (Telangana &Amp; Andra Pradesh)-Hyderabad
Permanent · BENGALURU
LIFESTYLE BRANDS
Brand Financial Manager - Bangalore
Permanent · BENGALURU
LIFESTYLE BRANDS
Brand Training Manager, Planet Fashion - Bangalore
Permanent · BENGALURU
DA MILANO LEATHERS PRIVATE LIMITED
Assistant Manager- Payroll
Permanent · DELHI
UNIVERSAL MANAGEMENT CONSULTANTS
Head of Human Resource
Permanent · BENGALURU
UNIVERSAL MANAGEMENT CONSULTANTS
Head of Human Resource
Permanent · DELHI
KOELLE DESIGNS PRIVATE LIMITED
Assistant Manager Purchase
Permanent · JAIPUR
CAREERMARK 6
HR Manager
Permanent · HIRIYUR
LINEN DESIGN COMPANY PVT.LTD
Senior Corporate Sales Manager
Permanent · GURUGRAM
UNITED HR SOLUTIONS PVT LTD
Business Development
Permanent · AHMEDABAD
AND DESIGNS INDIA LTD.
Buyer & Planner
Permanent · NAVI MUMBAI
GREENFIELD RESOURCES PVT. LTD.
Business Development Executive
Permanent · AHMEDABAD
GENIUS CONSULTANTS LIMITED
Head of Department - Cost Accountant
Permanent · KOLKATA
LIFESTYLE BRANDS
Brand Training Manager, Peter England - Bangalore
Permanent · BENGALURU
PLACEMENT PANDITS CONSULTING
Operations Manager-Garment Industry
Permanent · GURUGRAM
LIFESTYLE BRANDS
Area Sales Manager-Patna
Permanent · BENGALURU
LIFESTYLE BRANDS
Group Manager - E-Commerce Product (B2B)
Permanent · BENGALURU
LIFESTYLE BRANDS
Manager - Product, Louis Philippe
Permanent · BENGALURU
PANTALOONS HO
Senior Executive - Marketing
Permanent · PUNE
LIFESTYLE BRANDS
Manager - Trade Channel, Finance
Permanent · BENGALURU
LIFESTYLE BRANDS
Assistant Manager- Design, Casuals- pe
Permanent · BENGALURU
LIFESTYLE BRANDS
Executive -Key Accounts (Mis),lp
Permanent · BENGALURU

Farfetch revenue soars, losses remain but growth impresses

Published
today Nov 9, 2018
Reading time
access_time 3 minutes
Share
Download
Download the article
Print
Click here to print
Text size
aA+ aA-

Now that Farfetch is a listed company, we’ll be getting more regular updates on its financial progress and the first of those came this week as the company reported its third-quarter results. What did they show? Revenue growth is continuing to easily outpace the market even if making a profit remains some way off.


Image courtesy of Farfetch



We'll look at the detailed figures in a minute, but it's worth taking in some of the percentages first. The company said that its gross merchandise value (GMV) growth was 53% in the quarter. GMV aside (as that includes revenue that goes to its partner brands and retailers as well as its own coffers), Farfetch’s own Q3 revenue grew 52% and its ‘platform services revenue’ was up 61%. Meanwhile its active customer numbers rose a very healthy 42% and the number of orders was up 55%.

That clearly paints a picture of a business that’s in demand by consumers and that's increasingly attractive to retailers and brands too. In fact, it expanded its brand and boutique relationships in the quarter and its Marketplace now offers luxury products from over 1,000 vendors across 48 countries.

And we can't ignore its recent giant IPO, which left it “well capitalised with $1 billion in cash and cash equivalents” at the end of the quarter.

The company expects the luxury fashion industry to see online sales growing by as much as $100 billion over the next 10 years and it wants to be at the forefront of this growth.

The three months up to September 30 helped it on that journey and José Neves, Farfetch Founder, CEO and co-Chairman, talked up the firm’s “outsized growth” in the period.

He said the platform’s GMV was “growing at approximately twice the rate of the online luxury market in the third quarter… as we continued to leverage our unique positioning to be the category leader for the luxury industry.”

THE NUMBERS

So let's look at the figures. GMV grew from $204.6 million to $309.9 million year-on-year, Platform GMV rose to $305.8 million from $200.2 million and revenue rose from $86.9 million to $132.1 million. 

But the company remained loss-making. Its adjusted EBITDA was -$32.3 million, wider than the -$20.6 million of a year ago, although the adjusted EBITDA margin remained the same at 29.3%. The net loss surged to $77.2 million from just $28.1 million this time last year.

CFO Elliot Jordan was “delighted” with all of this and said that the “growth, coupled with attractive unit economics and improving operating efficiencies allows us to make further investments to continue to capture market share into the future.”

And there's no denying that, losses aside, the company appears to have a powerful future – the investors who flocked to it in droves during its recent IPO clearly believe that.


Farfetch



The company said that in Q3 the 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 quarter in terms of GMV.

It also signed new brands, including Moschino, Victoria Beckham, and Tory Burch, and widened its boutique network to now include partners in Russia and Estonia. And it launched Britain’s Harvey Nichols, as the first department store partner on the Marketplace, as well as partnering with Dover Street Market.

The company also boosted its technology with a new visual search function; launched Roberto Cavalli and Neil Barrett on its white label platform; and agreed to acquire CuriosityChina, a digital tech company that will provide a suite of services to help brands expand in China via web, app, WeChat Stores and Mini Programs.

So we know what the long-term aims are, but what does this all mean for the immediate future? In Q4, the all-important Christmas season quarter, Platform GMV is expected to be within the range of $435 million and $445 million, which is higher than the company’s previous estimates. 

And in that respect, Farfetch has much in common with other pureplay online retailers further down the price scale, such as Asos and Boohoo, with the kind of revenue expectations that physical store retailers can only envy. A big difference here, of course, is that the company’s unique operating model also adds revenue to the physical stores with which it partners rather than diverting it away.

Copyright © 2020 FashionNetwork.com All rights reserved.