{"id":233502,"date":"2023-05-19T10:44:12","date_gmt":"2023-05-19T09:44:12","guid":{"rendered":"https:\/\/www.theindustry.fashion\/?p=233502"},"modified":"2023-05-19T17:16:57","modified_gmt":"2023-05-19T16:16:57","slug":"farfetch-dives-into-the-red-due-to-unprecedented-macro-challenges","status":"publish","type":"post","link":"https:\/\/www.theindustry.fashion\/farfetch-dives-into-the-red-due-to-unprecedented-macro-challenges\/","title":{"rendered":"Farfetch dives into the red due to \"unprecedented macro challenges\""},"content":{"rendered":"
Luxury fashion platform\u00a0Farfetch<\/a> <\/span>has reported a loss after tax of $174 million (\u00a3140 million) in Q1, ending 31 March, despite reporting a revenue increase of 8% year-on-year.<\/strong><\/p>\n Last year, the company reported a profit of $729 million (\u00a3587 million) in the first quarter. However, Farfetch has swung into the red, after tax, by $174 million (\u00a3140 million) for the same first quarter period. Before tax, revenues were up by 8% to $556 million (\u00a3448 million).<\/p>\n Gross merchandise value stood flat at $932 million (\u00a3750 million) and digital platform GMV fell by 1% to $800 million (\u00a3644 million).<\/p>\n Farfetch\u2019s adjusted EBITDA loss was $34.7 million (\u00a327.9 million), which was on par with last year\u2019s loss of $35.7 million (\u00a328.7 million).<\/p>\n The company was affected by \"macro headwinds\" including the suspension of trade in Russia and mainland China, a rise in markdown sales, the currency impact of a strong US dollar and customer demand for cheaper alternatives.<\/p>\n