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Farfetch has reported that its revenue soared by 73% year-on-year to $438m (£332m) in its third quarter of trading.
The luxury fashion platform’s gross merchandise value and digital platform GMV growth rates also accelerated in the period, up 62% and 60% year-on-year respectively, to “record highs” of $798m (£606m) and $674m (£491m).
In addition, Farfetch announced a global partnership with Alibaba and Richemont to assist in the digital evolution of the company, who will invest $1.1bn (£836m) in the business.
José Neves, Farfetch’s Founder and CEO, said: “The Farfetch platform continued to accelerate in third quarter 2020, setting another quarterly GMV record and further indicating we are witnessing a paradigm shift in favor of online luxury.
“The Farfetch platform is not only capturing this opportunity but is helping drive this paradigm shift both for luxury consumers and brands. What we are seeing is the acceleration of the secular trend of online adoption in luxury – an industry that is still very underpenetrated.”
He added: “The capabilities developed across the Farfetch platform over the past 13 years in anticipation of the eventual digitization of the luxury industry uniquely position Farfetch to capture this opportunity today.
“And our recently announced partnership with Alibaba and Richemont further position us to seize the opportunity to bring the luxury industry into the next generation and drive sustained growth and market share for many years to come.”
Elliot Jordan, CFO of Farfetch, said: “I’m delighted by the results of our third quarter, reflecting strong momentum behind the Farfetch platform and an acceleration of growth on the marketplace.
“This strong growth in revenue, steady improvement in unit economics and further operating cost efficiencies means we are another step closer to achieving the key milestone of operational profitability in the near-term.”
He added: “The strong underlying financial profile of Farfetch and recent investments by our new strategic partners who form part of Luxury New Retail initiative means we are well placed to support the global luxury industry in navigating the continued growth in online over the coming years.”
