Farfetch posts increase in quarterly earnings

Farfetch’s gross merchandise value (GMV) grew 40 per cent year on year to more than £721 million for the three months to 30 June 2021 and more than double that of the same quarter in 2019.

Full-price digital platform sales growth of 90 per cent at the luxury fashion retailer led to GMV increases of 40 per cent year on year and 89 per cent compared with the same quarter of 2019.

Revenue rose 43 per cent year on year to £384 million, leading to profit after tax of £65 million.

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

The company said that the increase was primarily driven by 47.1 percent growth in digital platform revenue to £317 million with overall growth impacted by comparatively lower brand platform revenue growth of 9.6 percent.

Commenting on the second quarter results, Farfetch founder, chairman and chief executive José Neves said in a statement: “I am very proud that Farfetch was a close partner for both retailers and brands in this time, delivering strong growth to our sellers, and as a result doubling our GMV in the last 24 months.”

“After an unprecedented period, the luxury industry is already back to growth with even stronger fundamentals.

“Our stronger Farfetch brand is drawing marketing partnerships and even greater supply from brands to drive a 90 per cent increase in full-price sales year on year from the highly valuable luxury audience we have attracted.

“All this boosts our progress towards becoming the global platform for luxury, as we continue to advance our initiatives in China, Farfetch Platform Solutions, Farfetch Connected Retail and our Luxury New Retail vision.”

Farfetch’s strong earnings come in the midst of recovery in the luxury sector after a tough year amid the pandemic with Kering, LVMH, and Richemont all posting strong results as consumers spend coming out of lockdown.