Farfetch: “Tremendous start to 2021” after sales rise 46%

Farfetch José Neves
Farfetch reported profit after tax of £367.5m
// Farfetch sales increased 46%
// Adjusted EBITDA losses narrowed to £13.5m from £15.6m in its first quarter
// Gross merchandise value and digital platform GMV grew 50% and 60% to £651.2m and £561.6m respectively

Farfetch has hailed a “tremendous start to 2021” after strong growth in both revenues and gross merchandise values.

The luxury online retailer reported a 46 per cent year-on-year increase in sales to $485 million (£344.1 million), while adjusted EBITDA losses narrowed to $19 million (£13.5 million) from $22 million (£15.6 million) in its first quarter.

Farfetch reported profit after tax of $517 million (£367.5 million), which included a $660 million (£469 million) non-cash benefit arising from lower share price impact on items held at fair value and remeasurements.

READ MORE: Farfetch swings to £1.65bn loss despite soaring revenues

The retailer said gross merchandise value and digital platform GMV for the period grew 50 per cent and 60 per cent year on year to $916 million (£651.2 million) and $790 million (£561.6 million) respectively.

“Farfetch is off to a tremendous start in 2021 with stronger than expected acceleration in the business in the first quarter and higher full-year growth expectations than initially anticipated,” chief executive José Neves said.

“Our brand partnerships have never been stronger and our customer- and brand-building initiatives are resonating well to drive awareness of our value proposition and retention of our valuable consumers.

“I am also very enthused by the positive consumer reaction to our recent launch on Tmall’s Luxury Pavilion and the momentum building behind our Luxury New Retail vision as we see it being adopted by luxury partners around the world.

“I am more confident than ever in our position to go after the significant growth opportunities we see as a digital enabler of the global luxury industry – a nearly $300 billion opportunity, which we remain laser-focused on and plan to continue investing behind to deliver significant value over the long term.”

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