Farfetch closes down first quarter. The luxury fashion online distribution company closed the first three months of the year with a slight increase in sales, but is still loss-making. The conglomerate has already entered the red in the last quarter of 2022.
The company started the year with a rad number of $171.2 million as compared to $734.3 million that the company registered in the same period last year. It reported a loss of $176.7 million in the last quarter of 2022.
Group sales, for their part, rose 8% in the first quarter to $556.3 million, driven by growth in online platforms, which boosted its turnover by 6.5% in the period to $421.5 million.
“I am very confident in our prospects to continue expanding our reach in this resilient luxury industry and our prospects to generate a sustainable cash flow for years to come,” Jose Neves, the company’s founder and CEO, said in a statement.
Farfetch has a loss of $ 171.2 million in the first quarter of the year
The luxury fashion company recorded a gross merchandise value (GMV) of $931.6 million during the period, which is slightly higher than the $930.7 million achieved by the company in the same period in 2022.
As the company said in a statement, the company’s GMV grew primarily in the United States and China, Farfetch’s two largest markets. “This added to our recent launches of Ferragamo, Reebook and Neiman Marcus for the second half of the year confirms we are still on track,” the CEO said.
The New York Stock Exchange-listed company ended last year with sales of $2,256.6 million, up 4% from 2021, two years after the company posted record growth. The company’s profit, for its part, fell 76%, narrowing to $344.8 million from a loss it registered in the last quarter of the year.
Facing the end of the year, Farfetch announced a few months back that it was adjusting its forecasts, which it now confirms. The company plans to reach a GMV of $4,900 million in 2023, which would mean an annual growth of 19.5%. Furthermore, the company anticipates a gross operating profit margin (EBITDA) of between 1% and 3% in 2023.
