Luxury fashion platform Farfetch revealed a loss after tax of $174m (£140m) for the first quarter ended 31 March 2023, despite its revenue increasing by 8% year-over-year to $556.4m (£448.4m) in the same period.
While the group’s digital platform gross merchandise value (GMV) decreased by 1% year-over-year to $799m (£643m), its brand platform GMV increased 10% to $109.7m (£88.4m).
However, this amounted to a total GMV increase of 0.2% to $931.7m (£750m) for the quarter.
As a result, the group’s gross profit margin for the quarter dropped by 160 bps year-over-year to 43.2%, while its digital platform order contribution margin saw a decrease of 30 bps year-over-year to 32.4%.
In addition, the group’s adjusted EBITDA stands at $35m (£28.2m) for the quarter.
José Neves, founder and CEO of Farfetch, said: “I am delighted to report that Farfetch was back to growth in the first quarter 2023. Our first quarter results represent the first step towards achieving our plan for 2023, our ‘Year of Execution’, and demonstrate our strong execution in the face of continued macro headwinds.
“At the same time, we continue to focus on our medium and longer-term goals, including our mission to be the leading global platform for the more than $360bn (£290bn) luxury industry. We believe we are uniquely positioned to go after this opportunity, and have demonstrated a track record of strong growth over the years.”
Elliot Jordan, CFO of Farfetch, said: “I am very pleased with our first quarter 2023 results. We have delivered what we set out to achieve, with accelerating underlying growth, disciplined cost control and improved cash flows.
“We have successfully navigated through unprecedented macro challenges, and through continued focused execution, we remain on track to deliver a year of luxury market-beating growth, a return to profitability and positive free cash flow.”
