// Farfetch losses widen during third quarter
// The number of active customers increased from 1.9 million to 2.7 million
Farfetch has reported widening losses during its third quarter despite a sales rise.
The luxury retailer saw a $537 million (£402 million) loss after tax during the three months to September 30, compared to a $90.5m loss during the same period last year.
Revenues during the quarter rose 71 per cent to $438 million, while gross merchandise value increased 62 per cent to $798 million.
READ MORE: Alibaba and Richemont invest over £200m in Farfetch with focus on China
On an adjusted EBITDA basis, Farfetch’s losses narrowed to $10.3 million from $35.7 million during the same quarter in 2019.
The number of active customers on its digital platform increased from 1.9 million last year to 2.7 million.
Last week, it was reported that Alibaba and Richemont were set to invest $300 million (£224 million) each in Farfetch as the trio launch a Chinese joint venture.
Alibaba was in advanced discussions with Farfetch, a marketplace for independent fashion boutiques.
Swiss luxury group Richemont, which owns Cartier, currently operates a joint venture with Alibaba in China.
“The Farfetch platform continued to accelerate in third quarter 2020, setting another quarterly GMV record and further indicating we are witnessing a paradigm shift in favor of online luxury,” Farfetch founder, chair and chief executive José Neves said.
“The Farfetch platform is not only capturing this opportunity but is helping drive this paradigm shift both for luxury consumers and brands.
“What we are seeing is the acceleration of the secular trend of online adoption in luxury – an industry that is still very underpenetrated.
“The capabilities developed across the Farfetch platform over the past 13 years in anticipation of the eventual digitization of the luxury industry uniquely position Farfetch to capture this opportunity today.”
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