Farfetch Limited, the Internet platform for luxury goods, realized an 18.7 percent decline in attributable profit to $70.5 million from $86.6 million for the second quarter ended June 30. Ebit was down by 29 percent to $60.4 million from $84.7 million as the operating loss widened by 11.5 percent to $167.5 million from $150.3 million. Revenues increased 10.7 percent (+20.7% in constant currency) to $579.3 million from $523.3 million, but gross margin contracted to 44.0 percent from 46.2 percent.
The London-based company, which said its constant-currency gross merchandise value (GMV) rose 1.3 percent year-over-year during Q2 to $1 billion, recently announced a partnership with Richmont that will have the firm’s Maisons and YNAP businesses adopting Farfetch’s platform and joining its marketplace.
“We are navigating a volatile macro environment adeptly, continuing to post growth compounding on what has been a tremendous three-year run for Farfetch,” said José Neves, founder, chairman and CEO of Farfetch. ”This makes me extremely bullish for 2023, a year when we will lap the closure of our Russia operations, expect China to turn into a tailwind, and will start to see the fruits of large deals signed this year with Reebok, Neiman Marcus Group and Salvatore Ferragamo.”
