FarFetch hails growth due to ‘strong momentum’

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Global online fashion brand Farfetch has seen strong growth over the past year after reporting record sales figures and a 30% rise in share value.

The  luxury ecommerce retailer saw annual gross merchandise value (GMV) rise 33% year-on-year (YOY) to £3.1 billion. It almost doubled compared to 2019, with a 98% increase.

Revenue also surged by more than a third (35%) to £1.4 billion.

The company said the GMV growth was driven by the strong performance of its digital platform where GMV increased by 22% YOY, reaching £970 million and £821 million respectively. Q4 revenue also rose by 23%, to £497 million.

READ MORE: Farfetch acquires resale platform Luxclusif

Farfetch also reported a quarterly gross profit margin of 47.1%, an increase from 46.1% last year, while the full-year figure rose to 46.1% from 45%.

In addition, the digital platform order contribution margin was 32.4%. However, this was down from 35.1% in 2020’s fourth quarter. For the full year, that margin dropped to 31.6% from 35%.

“The figures clearly demonstrate the strong momentum behind the Farfetch platform,” said Farfetch founder and chief executive officer José Neves.

“We exit the year having once again delivered market-share-capturing GMV growth in 2021 along with our first year of adjusted EBITDA profitability.

“This positions Farfetch for an incredible 2022 focused on continuing to lead the online luxury fashion industry, growing faster than the runner-ups, and expanding profitability.”

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