Farfetch Limited, the Internet platform for luxury goods whose year-over-year SKU base grew to a record 17 million units from over 1,400 sellers in Q1, lost $174.3 million against a profit of $728.8 million in the period ended March 31. Revenues increased by 8.1 percent to $556.4 million from $514.8 million, but gross merchandise value (GMV) was essentially flat year-over-year at $931.7 million on a reported basis but was 3.6 percent higher on a constant-currency basis. GMV increased in the London company’s two largest markets, China and the USA.
Brand platform GMV rose by 10.0 percent to $109.7 million, but it declined by 1.2 percent in the Digital platform segment to $799.7 million due to ongoing headwinds from the suspension of business in Russia. Average order value (AOV) fell by 10.4 percent in the digital channel to $566 due to a higher mix of markdown sales; currency impacts from a stronger U.S. dollar, and a customer shift toward lower-priced products. In-store GMV increased by 3.8 percent to $21.5 million and would have been 10.0 percent on a constant-currency basis.
The group’s New Guards Group continues to focus on direct-to-consumer channels while creating culturally relevant collections. Most recently, those efforts have included a limited-edition T-shirt for AC Milan, three color variations on Barbour’s Bedale wax jackets and new activewear and kidswear categories for sustainable brand There Was One. This month, Farfetch commercially launched a European partnership with Reebok by re-platforming e-commerce sites for the brand across the continent. The NGG++ division operates the Reebok license to grow the brand’s sportswear and sneaker businesses.
