Farfetch Limited, the Internet platform for luxury goods, suffered a $218.5 million loss in the third quarter versus a $105.7 million loss in the year-ago period ended Sept. 30. The attributable net loss was $274.2 million against a profit of $767.2 million. Revenues increased 1.9 percent (14.1% in constant currency) to $593.4 million from $582.6 million as gross margin improved to 44.9 percent from 43.3 percent.
The London company said constant-currency gross merchandise value (GMV) rose 4.2 percent to $967.4 million, with the Digital platform posting a 2.6 percent constant-currency increase to $787.4 million and the Brand platform rising at a 4.9 percent rate to $148.1 million. In-store GMV on a constant-currency basis improved 54 percent to $31.9 million.
José Neves, founder, chairman and CEO of Farfetch, said the company is on track to double its size over three years despite being forced to navigate “an unprecedented series of global events.” Adding that Farfetch is well capitalized to execute its long-term vision, he predicted the firm will return to profitable growth in 2023. The company secured a five-year, $400 million term loan with a syndicate of lenders in late October and subsequently settled $50.0 million worth of five-year notes with Tencent that were due in 2025 for stock and cash of $32.5 million.
The group’s current FY22 outlook is calling for an adjusted Ebitda margin of -3 to -5 percent, flat GMV on its Brand platform and a decline of 5 to 7 percent in GMV on its Digital platform.
