International luxury fashion marketplace Farfetch reported global merchandise revenues (GMV) of $415 million for the first quarter, beating company expectations, as the London-based company continues to be lossmaking.
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For the three months ending March 31, Farfetch saw GMV rise 44%, or close to 50% growth on a constant currency basis. GMV was driven by a 64.3% increase in active consumers to 1.7 million.
“This outpaced both our expectations and, by some distance, growth in the online personal luxury goods sector as we continued to gain market share,” said José Neves, Farfetch’s founder and CEO.
Likewise, the fashion and technology platform recorded revenue increases of 39% to $174 million and platform services revenue was up 43% year-on-year to almost $142 million.
With the increase in sales, Farfetch said its adjusted EBITDA loss increased by $6.6m, or 27.8%, year-on-year to $30.2m, although the adjusted EBITDA margin improved from -22.9% to -20.7%.
Its after-tax loss lifted 115.4% to $109.3 million, with the operating loss widening from $35.1 million to $85.5 million.
During the quarter, the company achieved several important strategic milestones. This included launching its Augmented Retail pilot in Chanel’s new Paris flagship boutique at 19 Rue Cambon, as well as entering the sneaker resale market. It also launched on JD.com’s platform through the recent acquisition of Stadium Goods and Toplife, “both of which are on pace to be operationally integrated ahead of schedule,” said the company.
“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,” said Elliot Jordan, CFO of Farfetch.
Looking head, the company expects its second quarter to experience strong growth, with platform GMV to be up between 40% and 42%, and while tits adjusted EBITDA margin should improve.