Farfetch, the renowned luxury online retailer that recently went public, unveiled its third-quarter financial results, showcasing a robust growth trajectory despite operating at a loss. The company reported a remarkable 53% surge in gross merchandise value (GMV) during the quarter, coupled with a 52% increase in its own revenue and a significant 61% spike in platform services revenue. This growth is further bolstered by a striking 42% surge in active customer numbers and a substantial 55% rise in the number of orders processed.
One of the key drivers behind Farfetch’s impressive performance is its strategic partnerships with luxury brands and boutiques, along with its expansive platform offering products from more than 1,000 vendors across 48 countries. Following its successful IPO, Farfetch has substantially bolstered its financial position, finishing the quarter with an enviable $1 billion in cash and cash equivalents. With aspirations to solidify its position as a frontrunner in the luxury sector, Farfetch is gearing up to leverage the projected $100 billion surge in online luxury sales over the coming decade.
Despite its revenue growth, Farfetch continues to operate at a loss, with an adjusted EBITDA of -$32.3 million for the quarter, widening from the previous year, and a net loss of $77.2 million. Nevertheless, the company’s CFO is pleased with the growth trajectory and has articulated plans to make further investments to capture a larger market share in the future.
To fuel its growth, Farfetch is actively expanding its product offerings, enhancing its technological capabilities, and exploring new markets. For the upcoming fourth quarter, the company foresees Platform GMV to be in the range of $435 million to $445 million, surpassing initial estimates. Farfetch’s performance aligns with that of other prominent online retailers such as Asos and Boohoo, as they gear up for the lucrative holiday season.
Farfetch’s distinctive business model, which revolves around collaborating with physical stores rather than competing against them, enables the company to not only thrive but also generate revenue for its partners. With a solid growth trajectory and strategic investments in place, the future looks promising for Farfetch in the realm of luxury online retail.
For more information on Farfetch’s latest financial results, visit their official website here. You can also track their stock performance on the stock market through this link here.
