Farfetch CFO to step down as revenues slow
Farfetch has announced that Elliot Jordan will step down by the end of 2023, after more than eight years as Chief Financial Officer. The news comes as revenues at the luxury ecommerce platform slowed in the final quarter and it warned of “reduced demand” for its offerings and services.
The company will now initiate a search process to identify his successor, with Jordan agreeing to serve as its CFO through the remainder of 2023.
Despite reporting 'record revenues' in 2022 of $2.3 billion (rising 3% year-over year), 2022 Gross Merchandise Value (GMV) decreased by 4% year-over-year to $4.1 billion.
Q4 2022 revenue decreased 5% year-over-year to $629 million, with Q4 GMV decreasing 12% year-over-year to $1.1 billion.
Other financial highlights reported included:
- Q4 2022 Digital Platform GMV decreased 12% year-over-year to $1.0 billion
- Q4 2022 Brand Platform GMV decreased 15% year-over-year to $100 million
- Q4 2022 Gross Profit Margin of 41.1% (a decrease of 600 bps year-over-year)
- Q4 2022 Loss after Tax of $177 million
Jordan joined Farfetch in January 2015. Since that time, Farfetch has grown its annual GMV from $380 million to $4.1 billion, now serving over 190 countries and territories. He has helped guide Farfetch through its transformation from a private company to a publicly traded company, including Farfetch's listing on the New York Stock Exchange in September 2018.
José Neves, Farfetch Founder, CEO and Chairman, said: “Elliot has been a fantastic CFO, and I very much appreciate his continued commitment to the business until the end of the year. I look forward to working with Elliot to ensure a smooth transition.
“We are some way off from saying our ‘goodbyes’ but his legacy will be formidable finance and business services teams that are part of a company that we believe is extremely well placed to continue to lead the industry and drive profitable growth – and Elliot has been an important building block of our success.”
Elliot Jordan, Farfetch CFO, added: “Farfetch is at an exciting moment in its history with the business poised to achieve significant milestones in the next few years and I look forward to handing over a company with such a strong balance sheet and robust cash generation potential.”