Farfetch in-store revenue boosts mixed third quarter results

Farfetch has released its financial results for the third quarter ending 30 September 2022, revealing a £3.4 million ($4.1 million) loss in adjusted EBITDA.

Revenue was up 1.9% to £497.7 million ($593.4 million), driven by a 1.6% increase in digital platform revenue and 39.7% rise in in-store revenue, offset by a 2.1% drop in brand platform revenue.

Gross profit increased 5.7% to £223.6 million ($266.6 million) and gross profit margin increased 160 bps to 44.9%, driven by margin improvements in all segments.

Gross merchandise value (GMV) performance decreased 4.9% to £811.4 million ($967.4 million), with digital platform GMV down 5% to £660.5 million ($787.4 million). This reflects continuing headwinds from the suspension of trade in Russia, and mainland China, where COVID-19 restrictions continued to impact trade.

In-store GMV increased 35.3% to £26.7 million ($31.9 million), due to additional openings of New Guards brands' stores in the last 12 months and growth from key existing stores.

Farfetch's marketplace supply from both multi-brand retailers and e-concession partners increased 25% to a record £4.6 billion ($5.5 billion). However, average order value decreased to £444 ($530), largely due to exchange rates and a decline in average selling price, which was partially offset by an increase in the number of items per order.

Elliot Jordan, CFO of Farfetch, said: “Our third quarter results show Farfetch is successfully navigating an unprecedented macro environment, with revenue growth, significant gross margin and order contribution margin improvements year-on-year and the early financial benefits from our recent initiatives to rationalise our cost base, which are ongoing.

"Whilst we continue to manage through the current environment, we remain well capitalised to execute on our long-term vision, and I am confident we will return to profitable growth in 2023.”