Retail in Asia

In Sectors

Farfetch GMV inches forward on digital platform revenues, China GMV continues to decline

Farfetch Group reported a GMV increase of 1.2 percent in the second quarter to USD 1.03 billion, on the back of a mid-single-digit growth in digital platform revenues and a lift in marketplace orders.

SEE ALSO: Farfetch to shutter beauty business

The London-based company said quarter digital platform GMV increased 6.9 percent to USD 944.3 million, reflecting an increase in marketplace orders and growth of Farfetch platform solutions GMV. The gains were partially offset by a decrease in marketplace average order value from USD 596 to USD 561, driven largely by an increased mix of markdown sales, as well as a continued decrease in digital platform GMV in the U.S. and China.

The owner of New Guards Group said brand platform GMV decreased 40.8 percent year-over-year to USD 63.4 million, primarily due to the timing of shipments and a decline in wholesale orders. This was partially offset by the group’s European partnership with Reebok, which was commercially launched in May 2023.

Finally, in-store GMV decreased 17.5 percent year-over-year to USD 24.9 million, driven by lower sales in stores in the U.S., partially offset by growth in stores in Europe.

“Our Q2 results show Farfetch is growing, becoming more efficient, and executing on our key strategic priorities,” said José Neves, Farfetch founder, chairman and CEO.

“We have also taken decisive action to adapt to the macro environment of the last 18 months. 2023 is set up to be a great year for Farfetch, toward strong GMV growth, adjusted EBITDA profitability and positive free cash flow. All the while we remain steadfast on delivering our strategic vision of becoming the global platform for luxury.”

Looking ahead, Farfetch said it expects full-year 2023 GMV to be approximately USD 4.4 billion, up from USD 4.1 billion in 2022.