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Farfetch Q4 GMV increases by 22 percent, revenues up 23.2 percent

By Prachi Singh

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Business

Image: Farfetch

Farfetch Limited GMV increased by 232.2 million dollars to 1,289.1 million dollars in fourth quarter 2021, representing growth of 22 percent.

The company’s revenue increased by 125.5 million dollars to 665.7 million dollars in fourth quarter, representing growth of 23.2 percent. The company said in a release that the increase was driven by 24.5 percent growth in digital platform revenue to 526 million dollars and 12.8 percent growth in brand platform revenue to 117.2 million dollars.

Commenting on the fourth quarter trading, José Neves, Farfetch founder, chairman and CEO said: “Our fourth quarter results clearly demonstrate the strong momentum behind the Farfetch platform. We exit the year having once again delivered market share capturing GMV growth in 2021 along with our first year of adjusted EBITDA profitability. This positions Farfetch for an incredible 2022 focused on continuing to lead the online luxury fashion industry, growing faster than the runner-ups, and expanding profitability.”

Review of Farfetch’s Q4 financial performance

The company’s digital platform GMV increased by 206.7 million dollars to 1,146.2 million dollars, up 22 percent driven by digital platform segment performance.

The company added that brand platform GMV increased by 12.8 percent to 117.2 million dollars driven by demand for new collections launched during the quarter, and was impacted by a change in the timing of shipments compared to the prior year, in addition to delays arising from the migration to a new warehouse.

In-store GMV increased by 88.9 percent to 25.8 million dollars, driven by additional New Guards brands stores opened in the last twelve months as well as growth from existing stores.

Digital platform services revenue increased by 24.2 percent, driven by third-party revenue, which increased 29.4 percent. Third-party revenue growth, the company further said, was offset by slower growth in digital platform services first-party revenue, which includes first-party original, of 16.4 percent, with strong performance of Browns’ products on the digital platform offset by slower growth in first-party original products following a strategic decision to control markdowns.

Digital platform fulfilment revenue increased 25.7 percent.

Farfetch reports profit after tax of 96.9 million dollars in Q4

The company’s profit after tax increased by 2,360.5 million dollars from a loss of 2,263.6 million dollars to a profit of 96.9 million dollars in the fourth quarter of 2021.

Fourth quarter basic EPS was 27 cents and diluted EPS was negative 23 cents.

Adjusted EBITDA improved by 25.7 million dollars to 36.1 million dollars in fourth quarter 2021 as a result of growth, improved gross profit margins, and scaling of the operating cost base. Adjusted EBITDA margin improved from 2.2 percent to 6.3 percent.

For full year 2022, Farfetch expects digital platform GMV growth of 28 percent to 32 percent, brand platform GMV growth of 20 percent to 25 percent and adjusted EBITDA margin of 1 percent to 2 percent.

Farfetch