José Neves, Farfetch Founder, CEO and Co-Chair, announced that the global technology platform for the luxury fashion industry enjoyed excellent growth in first quarter 2019 with Platform GMV rising 44% to $415 million, or approximately 50% growth on a constant currency basis. The rapid growth of Farfetch exceeds the growth of the online luxury industry. For last year, the London-based, New York-listed online retailer saw revenues climb 56 per cent year-on-year to $602 million (£454 million).
In addition to strong operational execution, Farfetch reached some important strategic milestones like the launch the Augmented Retail pilot in Chanel’s new Paris flagship boutique at 19 Rue Cambon.
“We are also thrilled to be entering the sneaker resale market, and launching Farfetch on JD.com’s platform through our recent acquisitions of Stadium Goods and Toplife, both of which are on pace to be operationally integrated ahead of schedule,” said José Neves, Farfetch Founder, CEO and Co-Chair.
Our rapid growth, which far exceeds the growth of the online luxury industry, enables our continued investment in both nearer-term customer engagement and longer-term platform development, underpinning our continued future growth. Moreover, we also delivered Adjusted EBITDA margin in line with expectations.”
Recent business highlights include the addition of new fashion labels. Jil Sander, Etro, and Mulberry are now direct brand partners. Farfetch expanded the direct supply with several existing top brands including Versace, Maison Margiela, Valentino, Phillip Plein, Zegna, and Pucci, among others.
The luxury e-retailer added 30 new boutique partners including category specialists in fine jewelry & watches, and kidswear; and its first boutique partner in Puerto Rico. The company is also expanding department store relationships, adding On Pedder and Joyce of the Lane Crawford Joyce Group, the premier luxury department store group in Greater China.
Farfetch Platform Solutions launched a site for fashion label, 3.1 Phillip Lim, on its white-label platform, providing the brand with an e-commerce solution with the same technology, features, and ongoing innovations as the Farfetch Marketplace. The company also launched a localized Farfetch site in Denmark, expanding Farfetch’s global reach to include 22 localized sites in 15 different languages.
Farfetch also began piloting Second Life buyback program enabling customers to trade their designer handbags for credit towards future Farfetch purchases. The Dream Assembly, Farfetch’s technology accelerator, turned the full focus of its second cohort to sustainability as it welcomed for-profit startups focused on making fashion a “force for good”, in partnership with Stella McCartney and Burberry. The luxury online platform Partnered with Kiva to empower Farfetchers to provide financial support to entrepreneurs in need across more than 80 countries.
Gross Merchandise Value and Platform GMV
Gross Merchandise Value (“GMV”) increased by $126.6 million from $292.7 million to $419.3 million in first quarter 2019, representing year-over-year growth of 43.2%. Platform GMV increased by $126.1 million from $288.7 million to $414.7 million, representing year-over-year growth of 43.7%. Excluding the impact of changes in foreign exchange rates,
Platform GMV would have increased by approximately 50%.
The increases in GMV and Platform GMV were primarily driven by an increase of 64.3% in Active Consumers to 1.7 million, and increases in average number of orders per Active Consumer and total number of orders on the Farfetch Marketplace. Other contributing factors include an increase in the number of clients supported by our white-label solution, growth in transactions through these managed websites, and the addition of Stadium Goods, our sneaker and streetwear marketplace.
Farfetch’s revenue increased by $48.4 million year-over-year from $125.6 million in first quarter 2018 to $174.1 million in first
quarter 2019, representing growth of 38.6%.
“For full year 2019, Platform GMV is expected to grow approximately 41%, and Adjusted EBITDA Margin is expected to be approximately (16%) – (17%),” added farfetch.