×
2 480
Fashion Jobs
VIVIENNE WESTWOOD
E-Commerce Studio Operations Manager
Permanent ·
STELLA MCCARTNEY
Art Director
Permanent · LONDON
HEAD OFFICE
Cyber Security Lead – Incident Response
Permanent · BRACKNELL
JOHN LEWIS
Team Manager, Operations
Permanent · LONDON
MAJE
Assistant Area Manager - London
Permanent · LONDRES
PRETTYLITTLETHING
Cyber Security Analyst
Permanent · MANCHESTER
PRETTYLITTLETHING
Buyer
Permanent · MANCHESTER
AESOP
Retail Consultant | Fixed-Term | Part-Time | Brighton
Permanent · Brighton
PRETTYLITTLETHING
Senior Affiliate Marketing Executive
Permanent · MANCHESTER
BOOHOO
Ecommerce Trading Executive
Permanent · MANCHESTER
ESTEE LAUDER
Clinique - Consultant - Brown Thomas, Dublin - 15 Hours - Part-Time, Permanent
Permanent · Dublin
SHISEIDO
Nars Account Manager - Harvey Nichols London (37.5 Hours)
Permanent · London
ESTEE LAUDER
Clinique - Consultant - m&s Newcastle - 15 Hours - Part Time, Permanent
Permanent · Newcastle upon Tyne
ESTEE LAUDER
jo Malone London - Marketing And Consumer Engagement Director
Permanent · London
AESOP
Retail Consultant | Part-Time, Permanent | Aesop Selfridges Exchange Square, Manchester
Permanent · Central
BOOHOO
Print Sales Account Manager
Permanent · MANCHESTER
VF INTERNATIONAL
dc Team Leader
Permanent · COALVILLE
ESTEE LAUDER
Mac Cosmetics - Business Manager - Mac Stratford2, London - 37.5 Hours / Week - Full Time, Permanent
Permanent · London
HARRODS
Brand Manager
Permanent · LAKESIDE
HARRODS
Uniformed Security Officer
Permanent · LONDON
VF INTERNATIONAL
Senior Distribution Systems Specialist
Permanent · COALVILLE
ESTEE LAUDER
Bobbi Brown, la Mer And Darphin - CRM & Insights Assistant
Permanent · London
Published
Nov 13, 2020
Reading time
2 minutes
Share
Download
Download the article
Print
Click here to print
Text size
aA+ aA-

Farfetch losses continue but CEO hails GMV surge, paradigm shift to e-luxury

Published
Nov 13, 2020

Farfetch is rarely out of the news these days and as this week ends, it’s making headlines with its Q3 results. The company saw its gross merchandise value (GMV) and digital platform GMV growth rates accelerating in the quarter – up 62% and 60% year-on-year, respectively. They reached record highs of $798 million and $674 million.


Farfetch



Overall, Q3 2020 revenue rose 71% year-on-year to $438 million and while it made a loss after tax of $537 million (much wider than the $90 million of a year earlier), its adjusted EBITDA improved to a loss of $10 million from $36 million a year ago.

Its digital platform GMV rose to $675 million from $420 million and with the company now a significant brand owner, its brand platform GMV and revenue rose to $112.3 million from $67.3 million. In-store GMV was up to $11.4 million from $9 million.

Farfetch said its 60% GMV growth was faster than ever and was driven by sales surges in all three of its geographic regions – the Americas, EMEA and APAC. And each of its top five countries grew faster than during Q2.

It said average order value (AOV) recovered to a -1% year-on-year change from -18% in Q2, “driven by increases in sales of full-priced and higher-priced items, despite [the] continued shift into lower-price categories”.

And it saw “continued high levels of customer engagement, with an increase in active consumers of 45%, while app installs rose over 70%, “increasingly becoming a preferred channel for consumers”.

It also signed new e-concession partners with Moncler, Dolce & Gabbana, Ralph Lauren and watchmaker Rado signing up, the latter being its first e-concession from the Swatch Group.

As for the basket of brand’s that it owns directly, we’ve already seen how its brand platform GMV/revenue surged and it was the sixth consecutive quarter that GMV from New Guards brands, in aggregate, exceeded GMV for any other single brand on the Farfetch Marketplace. During the period, Off-White released its second homewares collection, and new sneaker collaborations with Nike. And Palm Angels "continued to gain traction and became one of the top 10 brands on the Farfetch Marketplace, based on GMV”.

Founder and company chief José Neves hailed the three months as record-breaking on the GMV front, “further indicating we are witnessing a paradigm shift in favour of online luxury. The Farfetch platform is not only capturing this opportunity, but is helping drive this paradigm shift both for luxury consumers and brands”.

He said the industry is seeing the acceleration of the secular trend of online adoption in luxury – an industry that is still very under-penetrated”.

And he believes the recently-announced partnership with Alibaba and Richemont further positions it “to seize the opportunity to bring the luxury industry into the next generation and drive sustained growth and market share for many years to come”.

That partnership with Alibaba and Richemont will see Farfetch luxury shopping channels launching on Tmall Luxury Pavilion and Luxury Soho. The new China JV will operate Farfetch marketplace in the country and will be 75%-owned by Farfetch, with the remaining 25% owned equally by Alibaba and Richemont.

Copyright © 2022 FashionNetwork.com All rights reserved.