UK retailer Farfetch posts record high revenue of $2.3 bn in FY22

UK-based Farfetch, a leading online luxury fashion retail platform, has reported a record revenue of $2.3 billion, up 3 per cent year-on-year (YoY), in fiscal 2022 (FY22). The company reported stable gross profit of $1.02 billion, compared to $1.01 billion in FY21. However, the FY22 gross merchandise value (GMV) decreased by 4 per cent YoY to $4.1 billion.

In the fourth quarter (Q4) of FY22, Farfetch reported a decrease in revenue by 5 per cent YoY (or an increase of 2 per cent YoY at constant currency) to $629 million, with a GMV decrease of 12 per cent YoY to $1.1 billion, Farfetch said in a press release.

UK-based Farfetch, a leading online luxury fashion retail platform, has reported a record revenue of $2.3 billion, up 3 per cent year-on-year (YoY), in fiscal 2022 (FY22). The company reported stable gross profit of $1.02 billion, compared to $1.01 billion in FY21. However, the FY22 gross merchandise value (GMV) decreased by 4 per cent YoY to $4.1 billion.

The digital platform GMV in Q4 FY22 also decreased by 12 per cent YoY (or decreased by 6 per cent YoY at constant currency) to $1.0 billion. The company reported a gross profit margin of 41.1 per cent, a decrease of 600 basis points (bps) YoY, and a digital platform order contribution margin of 31.5 per cent, a decrease of 90 bps YoY. However, third-party transactions generated 80 per cent of digital platform GMV, with a third-party take rate of 32.4 per cent, supported by record media solutions revenue, which increased by over 50 per cent YoY.

The company’s Q4 FY22 brand platform GMV decreased by 15 per cent YoY (or by 3 per cent YoY at constant currency) to $100 million.

Furthermore, selling, general and administrative expenses increased by $56.8 million or 14.1 per cent YoY, from $403.4 million in Q4 FY21 to $460.2 million in Q4 FY22.

Farfetch’s Q4 FY22 loss after tax was $177 million and adjusted EBITDA declined by $70.7 million to a loss of $34.6 million.

For FY23, the company expects group GMV of approximately $4.9 billion, digital platform GMV of approximately $4.2 billion, and brand platform GMV of approximately $0.6 billion, as well as an adjusted EBITDA margin of 1 per cent to 3 per cent.

“I am proud to report Farfetch adeptly navigated unprecedented macro headwinds throughout 2022 to deliver growth on a constant currency basis, with full year GMV of $4.1 billion. Our performance also means we captured market share on a 3-year stack basis, with GMV nearly doubling since the onset of the COVID-19 pandemic, a truly remarkable accomplishment,” said Jose Neves, Farfetch founder, chairman, and CEO.

Fibre2Fashion News Desk (DP)