British retailer Farfetch's GMV climbs to $1,032.6 mn in Q2 FY23

However, the brand platform GMV declined 40.8 per cent YoY from $107.1 million to $63.4 million in Q2 FY23. This decrease was mainly attributed to the timing of shipments and a drop in wholesale orders. In-store GMV also fell, decreasing 17.5 per cent YoY from $30.2 million to $24.9 million, primarily due to lower sales in the US stores, although this was somewhat offset by growth in European stores, the company said in a press release.

Revenue declined $7.3 million YoY, representing a 1.3 per cent decrease to $572.1 million. The drop was driven by a 42.2 per cent decrease in brand platform revenue to $67.4 million and a 15.1 per cent decrease in in-store revenue to $22.7 million. These declines were partially balanced by a 10.5 per cent increase in digital platform revenue to $482 million.

Digital platform fulfilment revenue saw a significant boost, increasing 13.5 per cent YoY, mainly due to an increase in duties and a decrease in Farfetch-funded promotions.

Gross profit decreased by $24.8 million or 9.3 per cent YoY to $242.9 million, with the gross profit margin falling 370 basis points to 42.5 per cent. This decline was primarily driven by a decrease in digital platform gross profit margin.

Selling, general, and administrative expenses rose $21.1 million or 4.9 per cent YoY, reaching $456.4 million in Q2 FY23.

The company say a drop in profit after tax, which decreased $349 million YoY, turning from a $67.7 million profit in Q2 FY22 to a $281.3 million loss in Q2 FY23.

The second quarter of 2023's basic and diluted earnings per share (EPS) were minus $0.68. Adjusted EBITDA decreased by $6.3 million to a loss of $30.6 million for Q2 FY23, reflecting a 26.2 per cent decline compared to the same period in FY22. Additionally, the adjusted EBITDA Margin decreased by 150 basis points from minus 4.9 per cent in Q2 FY22 to minus 6.4 per cent in Q2 FY23.

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

Fibre2Fashion News Desk (DP)