Farfetch posts profit despite ecommerce rub-off

Farfetch posted profit after tax of $769m (£572.3m), bucking a trend that has seen a number of ecommerce sites see revenues fall.

The company’s profit comes after a loss of $537m (£400m) in the equivalent period last year, with adjusted EBITDA reaching $5.3m (£3.9m), from a loss of $10.3m (£7.7m) year-on-year.

Gross merchandise value (GMV) grew from 89 per cent in Q2 of this year to 97 per cent, from April through to June.

READ MORE: Ocado and Farfetch hit “decacorn” status helping make UK a world leader in tech

Farfetch has seen growth in key markets including China, US, the UK and the Middle East, which has led the period of growth.

The news comes after Farfetch confirmed it is in discussions with luxury goods group Richemont, which owns brands including Cartier.

Farfetch reached a valuation of $16.7 billion during the summer as it helped the UK rank third in the world behind the US and China for its number of of tech businesses worth more than $10 billion (decacorns), according to Tech Nation.

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