Farfetch Q1 revenues up by 39%
Online luxury platform Farfetch achieved a 39% increase in revenue in Q1 of 2019 to just over $174m outpacing the growth in the sector as a whole and it reported on some key strategic milestones.
Gross Merchandise Value hit $419.2m, up 50% on a constant currency basis, while GMV generated over the past 12 months hit $1.53bn.
The London-based and New York listed business also saw its active customer base hit 1.7m with an average order value of $601.
José Neves, Farfetch Founder, CEO and Co-Chair said: “Farfetch enjoyed excellent growth in first quarter 2019, with Platform GMV rising 44% to $415 million, or approximately 50% growth on a constant currency basis. This outpaced both our expectations and, by some distance, growth in the online personal luxury goods sector as we continued to gain market share.
"In addition to strong operational execution, we reached some important strategic milestones that position us for continued strong growth in 2020 and beyond. This included launching the Augmented Retail pilot in Chanel’s new Paris flagship boutique at 19 Rue Cambon. We are also thrilled to be entering the sneaker resale market, and launching Farfetch on JD.com’s platform through our recent acquisitions of Stadium Goods and Toplife, both of which are on pace to be operationally integrated ahead of schedule.
"Overall, we are very well-positioned to continue capturing share of the significant opportunity in the online personal luxury goods market.”
The business also expanded its direct supply with several existing brands including Versace, Maison Margiela, Valentino, Phillip Plein, Zegna, and Pucci, and added Jil Sander, Etro, and Mulberry as direct brand partners.
During the period it added 30 new boutique partners to its platform including its first in Puerto Rico. Its Farfetch Platform Solutions also launched a site for fashion label, 3.1 Phillip Lim, on its white-label platform.
Farfetch remains in the red with a loss after tax of -$109m for the period (more than twice that of the same period in the prior year), while it showed a loss of -$30.2m at EBITDA level, which it said was in line with expectations.
Elliot Jordan, CFO of Farfetch, said: “I am very pleased with the strong start we have made to the year, with the first quarter 2019 results demonstrating a well-executed quarter. Our rapid growth, which far exceeds the growth of the online luxury industry, enables our continued investment in both nearer-term customer engagement and longer-term platform development, underpinning our continued future growth. Moreover, we also delivered Adjusted EBITDA margin in line with expectations.”
