British online fashion retailer Farfetch said global revenue grew at a record speed in 2016, while losses widened for the year, on the back of increased investment in technology, customer acquisition and hiring.
For the twelve months ending December 31, 2016, Farfetch said after-tax losses widened to 34 million pounds from 28.7 million pounds, while operating losses grew to 33.5 million pounds from 26.5 million pounds.
The losses come despite Farfetch.com revenues growing 74 percent to 151.3 million pounds.
In a statement to Companies House in London, the company reported “strong growth in both demand for, and supply of, products through the Farfetch platform. The company is confident in its future outlook, and well placed to manage its business risks successfully despite the current uncertain economic outlook.”
Addressing the press post-earnings, founder and chief executive officer Jose Neves called Farfetch “a fast-growing company at an exciting stage in its journey, with over 21 million visits to our websites every month and relationships with over 500 partner boutiques and 200 brands.”
He added, “the trajectory of rapid growth and substantial investment continued in 2016, and we are pleased to have seen 81 percent growth in gross merchandise value, as well as strong growth of 74 percent, in revenues.”
Farfetch Group owns Farfetch.com and Browns. The aforementioned results pertain to Farfetch.com, the sales platform for luxury boutiques worldwide.
Moreover, Browns saw its revenue more than double to 36.9 million pounds, while losses widened to 6.4 million pounds from 369,330 pounds in the 17 months to December 31, 2016.
Looking ahead the group’s CEO was upbeat about the London-based retailer’s position moving forward.
“We have very strong foundations in place and will continue to invest and grow our business as we build the definitive technology platform for the luxury industry,” Neves said.