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Revenue rises 64% at Farfetch for 2020 but losses increase

Tom Shearsmith
26 February 2021

Farfetch has announced full year revenue for 2020 increased 64% year-on-year to $1.64 billion (£1.17 billion), with Q4 revenue alone increasing 41% to $540 million.

Despite the soar in revenues, Farfetch reported a Q4 loss after tax of $2.3 billion (£1.65 billion). The retailer’s loss before tax included $2.1 billion (£1.51 billion) non-cash impact of higher share price on items held at fair value and remeasurements.

Gross profit for 2020 reached $770 million (£552 million), however Farfetch made a loss after tax of $3.3 billion (£2.36 billion), reaching almost ten times the loss after tax of $373 million reported for 2019.

The company achieved its first ever quarter of positive adjusted EBITDA. The final quarter of 2020 adjusted EBITDA increased to $10 million (£7 million), up from a loss of $18 million (£12.9 million) in the same period for 2019.

José Neves, Farfetch Founder, Chairman and CEO said: "2020 put the Farfetch platform to the test, but thanks to our robust capabilities, resilient operations and utmost perseverance from our more than 5,000 Farfetchers, we rose to the challenge and enabled our nearly 1,400 Marketplace sellers and Farfetch Platform Solutions clients to continually serve millions of luxury consumers across the globe.

"As we enter 2021, I am more energised than ever by the prospects of leveraging our incredible achievements to date and our unique platform capabilities to go after the significant growth opportunities we see in our vision to be a digital enabler connecting the creators, curators and consumers of the global luxury industry, both online and offline – a nearly $300 billion opportunity we remain laser-focused on and plan to continue investing behind to deliver significant value over the long-term.”

Elliot Jordan, CFO of Farfetch, added: "We exceeded our own initial expectations for the year; accelerating growth in our digital platform, improving margins across all areas of the business and delivering strong operating cash flows.

"As a result, we delivered our first ever quarter of positive Adjusted EBITDA. Our industry partnerships and strategic alliances, as well as our $1.6 billion of liquidity, position us well to continue investing behind the long-term growth opportunities we see in digitally enabling the luxury industry."

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