Revenues fall for Farfetch in second quarter
Gross merchandise value (GMV) for the period was up by 1.2% to US$1.03 billion, while gross profit for the period fell by 9.2% to US$242.9 million, with a margin of 42.5% (down from 46.2% in the same period of 2022).
The company reported a loss after tax of US$281.34 million in the quarter, after making a profit of US$67.7 million in Q2 2022.
Digital platform GMV for the quarter increased by 6.9% to US$944.3 million, while brand platform GMV was down by 41% to US$63.43 million.
Looking forward, the company is expecting group GMV to be around US$4.4 billion, up from US$4.1 billion in 2022. Digital platform GMV is forecast to be up from 2022 at US$3.85 billion while brand platform GMV should be flat at US$0.45 billion.
Farfetch is forecasting revenue of around US$2.5 billion in the full 2023 fiscal year, an increase of almost 9% on 2022.
José Neves, Farfetch Founder, Chairman and CEO, said: “Our Q2 results show Farfetch is growing, becoming more efficient, and executing on our key strategic priorities. We have also taken decisive action to adapt to the macro environment of the last 18 months.
“2023 is set up to be a great year for Farfetch, toward strong GMV growth, Adjusted EBITDA profitability and positive free cash flow. All the while we remain steadfast on delivering our strategic vision of becoming the global platform for luxury.”