Farfetch, the luxury e-retailer, has reported its financial results for the third quarter of the 2022 fiscal year. Despite a decrease in gross merchandise value (GMV), the company recorded a revenue of $593.4 million, which marks a 1.9% growth compared to the same period last year. Additionally, the platform saw its gross profit increase by 5.7% to $266.6 million.
Although Farfetch experienced a growth in revenues and profits, it faced a decline in GMV by 4.9% or $148.1 million. This decrease in GMV led to a post-tax loss of $274.9 million. However, the company remains optimistic about its future outlook and is focused on its mission to be the global platform for luxury.
José Neves, the Founder and CEO of Farfetch, expressed his confidence in the luxury industry and Farfetch’s ability to double its size in three years. He emphasized the company’s resilience in navigating global events and its efforts to restructure the organization and streamline costs. Neves believes that these measures will position Farfetch to seize future opportunities and emerge as a stronger company that can generate profitability and cash flows.
While the company ended the past nine months with approximately $1.7 billion in revenue, it expects to return to profitability in 2023. Farfetch is leveraging the growing popularity of conscious products, which experienced a significant increase of 93% in searches during 2021.
Overall, Farfetch’s financial results for the third quarter of the 2022 fiscal year reflect mixed performance. While the company achieved growth in revenue and gross profit, the decline in GMV resulted in a post-tax loss. However, with its strategic restructuring efforts and focus on the luxury market, Farfetch anticipates a return to profitability in the near future.
Useful links:
– [Farfetch Financial Results Q3 2022](https://www.farfetchinvestors.com/~/media/Files/F/Farfetch-IR-V2/documents/farfetch-investor-presentation-third-quarter-2022.pdf)
– [Farfetch Website](https://www.farfetch.com/)
