Farfetch Q2 FY20: GMV up $721 mn; revenue jumps 74%

17 Aug '20

2 min read

Pic: Farfetch

Farfetch Limited, a UK-based leading global platform for the luxury fashion industry, posted 47.7 per cent growth in gross merchandise value (GMV) to $721.3 million in its second quarter (Q2) fiscal 2020 compared to GMV of $488.5 million in same period previous year. Revenue for the quarter rose 74.2 per cent to $364.6 million (Q2 FY19: $209.2 million).

“Second quarter 2020 was record-breaking for Farfetch. Digital Platform GMV was an all-time high $651 million, we attracted more than half a million new consumers our highest ever, and brands and retailers leaned in to offer the broadest selection of luxury fashion we have ever seen on the Marketplace,” José Neves, Farfetch founder, chairman and CEO, said in a press release.

Gross profit for the quarter jumped to $159.3 million ($85.2 million). Company stated that digital platform order contribution margin increased year-over-year to 35 per cent due to a significant decrease in funded promotions and an improvement in 1P gross profit margin.

The rise in digital platform GMV was principally driven by growth in active consumers to 2.5 million during Q2 FY20, increased supply available from nearly 1,300 partners, and the addition of direct-to-consumer brand sales from New Guards following its acquisition.

In its outlook for the third quarter (Q3) FY20, Fartech expects digital platform GMV of $588 million to $609 million.

“I believe this ongoing acceleration behind our business results from a paradigm shift in luxury shopping, as the industry undergoes a major acceleration of the secular online adoption I envisioned in founding Farfetch. We at Farfetch remain dedicated towards helping the global fashion community navigate these unprecedented times, connecting luxury’s curators, creators and consumers now, and in the years to come,” Neves said.

Fibre2Fashion News Desk (JL)

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