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Farfetch announces first year of adjusted EBITDA profitability

Mar 1, 2022 United Kingdom
Farfetch announces first year of adjusted EBITDA profitability
The luxury e-commerce platform has reported a record Gross Merchandise Value of 4.2 billion US dollars in 2021. Adjusted Ebitda margin rose to a positive 0.1%
“Our fourth quarter results clearly demonstrate the strong momentum behind the Farfetch platform. 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 runners-up, and expanding profitability. As we enter a post-pandemic environment, I am proud of the support Farfetch has provided to our partners across the global luxury community during this unprecedented time as we advanced our mission to be the connector between the curators, creators and consumers of the luxury fashion industry. Moreover, we are positioned to emerge stronger than ever, as an industry leader delivering strategic value to brand partners and an unmatched proposition for consumers”, commented José Neves, Farfetch Founder, Chairman and CEO.

Fourth Quarter Results

In the fourth quarter of 2021, which ended on the 31st of December, Farfetch’s revenue increased by 23.2%, totalling 665.7 million US dollars, as compared to 540.1 million US dollars in the same quarter of 2020. This result was driven by a 24.5% growth in the Digital Platform Revenue, reaching 526.0 million US dollars, and a 12.8% growth in Brand Platform Revenue, adding to 117.2 million US dollars.

Gross Merchandise Value (GMV) grew by 22.0% in the fourth quarter of the last year, amounting to 1.29 billion US dollars, on a comparable basis to similar period from the prior year. Specifically, Digital Platform GMV rose to 1.15 billion US dollars in this period from 939.4 million US dollars in the same period of 2020; Brand Platform GMV rose by 12.8%, totalling 117.2 million US dollars in the fourth quarter of 2021; In-Store GMV increased by 88.9% to 25.8 million US dollars in this period.

The gross profit margin widened to 47.1% in the fourth quarter of last year from 46.1% in similar period of 2020, and the adjusted EBITDA margin improved to 6.3% from 2.2%.


Full Year Results

In 2021, the company’s revenue totalled 2.27 US billions dollars, which reflects an increase of 35%, on a comparable basis to 2020.

Gross Merchandise Value (GMV) last year grew by 33%, reaching 4.23 billion US dollars, as compared to the prior year. Concretely, Digital Platform GMV rose from 2.76 billion US dollars in 2020 to 3.68 US dollars in the past year; Brand Platform GMV totalled 467.5 million US dollars in 2020, as compared to 390.01 million US dollars in the previous year; In-Store GMV amounted to 84.381 million US dollars in 2021, as compared to 37.52 million US dollars in 2020.  

2022 Outlook

For financial 2022, Farfetch is expecting Digital Platform GMV growth of 28% to 32% and Brand Platform GMV growth of 20% to 25%, year-over-year. The company also expects to achieve an adjusted EBITDA margin of 1% to 2%.


Image Credits: showstudio.com


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