Farfetch Q1 sales jump 46% under lockdown
Farfetch, the global online fashion marketplace, achieved a 46% in Gross Merchandise Value in Q1 to $610.8 million as the world entered lockdown due to the COVID-19 crisis.
For many of the boutiques and brands on its platform, Farfetch provided the only route to market during the crisis and the company made a point of prioritising independents on its platform.
It said that while some of its brand and boutique partners had been unable to fulfil orders at this time, it had not had a material impact on sales as 85% of its inventory was available at all times.
Meanwhile, during the period, digital platform GMV was up 19% to $494.9 million and it saw $107 million in brand platform GMV on the continued strength of its New Guards Group (NGG) collection of brands, which includes Virgil Abloh's cult brand Off White.
Q1 net loss was $79.1 million, which was marginally up on the prior year. However adjusted EBITDA improved from a $30m loss to a $22m loss, with EBITA margin dramatically improved at -7.4%.
José Neves, Farfetch Founder, CEO and Co-Chair said: “When I founded Farfetch 12 years ago, I never imagined that the global platform I was building for the luxury industry would be put to the test in such a devastating crisis. Our hearts go out to everyone who has been impacted by this global pandemic, and we are deeply grateful to the frontline and essential workers who are helping us all manage through this situation.
“Over the past few months, as we have responded to an ever-changing environment to serve the community of creators, curators, and consumers of this industry we so love, our teams have stretched beyond perceived limits, and demonstrated the resilience of our business model. I am extremely proud of them for rising to this unbelievable challenge. I can’t think of a better example of when our people have embodied our values, and I thank every Farfetcher for their resilience and dedication throughout this difficult period.
“The investments we have made to build the global platform for the luxury fashion industry have been paying off, with features such as our global logistics capabilities, geo-diversified supply network, and localized services for a global consumer base, enabling the continuity of our operations and delivery of our strong first quarter 2020 results. But one thing that has become evident over the past weeks, is that the world will not go back to the same ‘normal’ as we knew it pre-COVID-19. As we consider the structural changes that will likely impact the luxury industry, I am confident that our unique set of capabilities position Farfetch to be even stronger in the future.”