// Farfetch records 60% rise in traffic during lockdown thanks to store closures
// Revenues and profits rose during the period
Farfetch has recorded over 500,000 new customers as well as “significant” market share gain during its second quarter.
The online luxury retailer said it saw “strong momentum” in its business as traffic rose by 60 per cent thanks to the shift to digital during April, May and June – when lockdown was in full force in most countries.
Farfetch has also drafted in four new members to its board — Victor Luís, Stephanie Horton, Diane Irvine and Gillian Tans — who bring “extensive experience across technology, ecommerce, luxury fashion and finance”.
- Farfetch quarterly revenue soars 90% thanks to lockdown
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Luís was the long-time chief executive of Tapestry’s Coach, while Horton is marketing director for Google Shopping.
Irvine currently serves on the boards of several public companies, including Yelp, Casper Sleep and Funko, while Tans joins from Booking.com.
Farfetch also reported that its Gross Merchandise Value (GMV) and Digital Platform GMV growth rates had accelerated, with 48 per cent and 34 per cent year-on-year rises, respectively.
GMV rose to $721 million (£542 million) and Digital Platform GMV to $651 million (£490 million).
Revenue soared 74 per cent to $365 million (£274 million) and the company was able to boost its profitability with a 44 per cent gross profit margin and 35 per cent digital platform order contribution margin.
However, Farfetch still suffered from a net loss of $436 million (£328 million) compared with $95.4 million (£71.8 million) a year ago, due to the “non-cash impact of its higher share price on items held at fair value”.
Despite this, Farfetch said it has made progress towards its adjusted EBITDA profitability targeted for FY21.
Off-White continued its strong performance and Palm Angels “gained traction and became one of the top 20 brands on the Farfetch Marketplace, based on GMV”.
For the current quarter, Farfetch expects digital platform GMV of $588 million (£442 million) to $609 million (£458 million), representing growth of 40 per cent to 45 per cent year-on-year.
Brand platform GMV should be $90 million (£67 million) to $95 million (£71 million) and it expects adjusted EBITDA to be a loss of between $20 million (£15 million) and $25 million (£18 million).