Farfetch shares up as it posts narrower than expected quarterly loss

Farfetch shares jumped 16% in New York yesterday after the global online fashion marketplace posted a narrower-than-expected quarterly loss.

The UK-based but NY-listed business recorded revenues of $255.5m (2018: $134.5m) and Gross Merchandise Value of $492m (2018: $310m) in the three months to 30 September.

Its loss after tax was -$85.5m with an adjusted EBITDA loss of -$35.6m giving an EBITDA margin of -15.6%. The EBITDA margin for the same period in the prior year was -28.7%.

Average customer base increased from 1.24m to 1.9m and average order value was broadly flat at $582.

Founder, CEO and co-chairman Jose Neves said he was pleased with the progress: "We had a fantastic Q3, beating all our expectations, and continuing to capture market share at a rapid pace. With $1.8 billion of Digital Platform GMV and 1.9 million Active Consumers over the last twelve months, Farfetch is firmly established as the #1 in-season luxury player online." "

Through our revolutionary technology, services and reach, we will continue to deliver an amazing service to our community of over 1,200 brands and boutiques, while also delighting fashion lovers around the world."

Neves also defended the move to acquire Italian brand house New Guards Group this summer, which owns Virgil Abloh's Off-White among others. The move had been criticised by investors and analysts as it took Farfetch off track from its strategy of being a marketplace/technology platform and holding no stock.

Neves said: "We also remain focused on driving the cultural relevance of the Farfetch brand, and in that context I am delighted with our initial progress in integrating New Guards Group. A huge congratulations to all the brilliant Farfetchers who have worked so relentlessly across our global business to achieve these remarkable results.”