Global online luxury platform Farfetch has posted its first quarterly performance update since its $5.8bn float on the New York Stock Exchange in September, showing a 53% increase in Gross Merchandise Value (GMV) to $309.9m in Q3, the three months to 30 September.
The GMV figure includes revenue generate on behalf of partner brands and retailers; revenue for Farfetch alone, however, still grew impressively by 52% to $132.2m. Active customers were up 42% to 1.2m and average orders were up 55% to 662,500 with an average order value of $584.60.
The company remains loss-making with an EBITDA loss of -$32.3m (up from an EBITDA loss of -$20.6m in the same period last year) while its loss after tax hit -$77.3m (up from -$28.2m in Q3 2017), as it continues to invest heavily in technology and infrastructure. Farfetch, however, is in a strong cash position is sitting on $1bn in cash and cash equivalents following the IPO.
Founder, CEO and co-Chairman José Neves said he was “extremely proud” of the progress, the company he founded in London in 2008, had made against its strategic objectives.
“As the leading technology platform for the $300 billion luxury fashion industry, Farfetch delivered outsized growth with Platform Gross Merchandise Value growing at approximately twice the rate of the online luxury market in the third quarter of 2018. We also broadened our network of brands and boutiques, and now department stores, as we continued to leverage our unique positioning to be the category leader for the luxury industry,” he said.
“We believe the luxury fashion industry will see online sales expand by an incremental $100 billion over the next ten years.”
Farfetch, Founder, CEO and co-Chairman José Neves
Neves said the company was well positioned to capitalise on the anticipated future growth of luxury. “We believe the luxury fashion industry will see online sales expand by an incremental $100 billion over the next ten years. Our mission is to be the global platform for the industry, and we are squarely focused on capturing the lion’s share of this massive opportunity,” he said.
The company’s CFO Elliot Jordan said he was “delighted” with the performance “and our delivery of strong Gross Merchandise Value and revenue growth during the period. This growth, coupled with attractive unit economics and improving operating efficiencies allows us to make further investments to continue to capture market share into the future.”
Farfetch now represents 1,000 sellers across 48 countries and recent partnership wins include Victoria Beckham, Moschino and Tory Burch, along with department store Harvey Nichols and concept store Dover Street Market. It also expanded its boutique network into Estonia and Russia.
Its Black & White Solutions arms, which creates e-commerce solutions for third party brands, added Roberto Cavalli and Neil Barrett to its client base.
Looking forward Farfetch has raised its expectations for fourth quarter performance and said it anticipates Platform GMV for the fourth quarter of 2018 to be within the range of $435m and $445m, which is higher than its previous estimates.