Farfetch’s full-year sales skyrocket amid widening losses

Farfetch full year
// Farfetch full-year sales soars 56% year-on-year to $602m
// GMV shot up 55% to $1.4bn
// However, losses deepened as costs from expansion and IPO dragged its bottom line

Farfetch has posted another trading update of soaring revenues after what it described as a “blockbuster” year, but losses swelled due to expansion costs.

For the year ending December 31, the London-based, New York-listed online retailer saw revenues climb 56 per cent year-on-year to $602 million (£454 million).

Gross merchandise value also shot up by 55 per cent year-on-year, from $909.8 million (£687.2 million) to $1.4 billion (£1.05 billion).

For its fourth-quarter alone, Farfetch said revenue grew 54.6 per cent year-on-year to $195.5 million (£147.5 million), boosted by a 31 per cent surge in the number of active customers during that period.

Adjusted EBITDA for the final quarter also narrowed to a $14.6 million (£11.01 million) loss compared to the $23 million (£17.3 million) loss in the fourth quarter of 2017.

However, its full-year adjusted EBITDA loss widened from $58 million (£43.8 million) to $95.9 million (£72.4m).

It also made a full-year loss after tax of $155.5 million (£117.4 million), a deeper figure compared to the previous year’s loss of $112.3 million (£84.8 million).

Farfetch said the losses had swelled because of costs associated with expanding and its IPO listing.

Over the year, the luxury retailer increased its market share across all three of its regions, struck new partnership deals with other luxury retailers, acquired streetwear and sneaker marketplace Stadium Goods, and made its debut on the New York stock market.

Farfetch also used its full-year update to reveal a new partnership agreement with JD.com’s Toplife platform, several weeks after it struck an exclusive deal with world-renowned department store Harrods.

“By all measures, 2018 was a blockbuster year for Farfetch,” chief executive Jose Neves said.

“We continued to lead the online personal luxury goods market, growing GMV 55 per cent for the year – more than twice as fast as the industry.”

“We also exited our first decade as a company with an incredible foundation for realising our platform vision globally, including in China, with the announced acquisition of Toplife solidifying Farfetch as the premier luxury gateway to China.”

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