📉 Tough Q1 numbers
Farfetch’s Q1 was a mixed bag. GMV grew 1.7% to $930.8M, with Digital Platform GMV up 2.5% to $809.5M. Revenue rose 6.1% to $514.8M, but profit margins dipped to 44.8%. Adjusted EBITDA loss widened to $35.8M from $19.2M. Investors expected worse, so shares rose.
🌍 Global pressures
Farfetch saw strong growth in the Americas, Middle East, and Korea. AOV rose from $618 to $632. However, China’s lockdowns and Russia’s market exit hurt demand. Brand Platform GMV fell 11.2% to $99.7M due to supply chain delays and currency shifts.
🏬 Retail gains
In-store GMV surged 62% to $21.5M, fueled by new stores under New Guards brands. However, supply issues delayed shipments, possibly affecting Q2 margins. The firm remains bullish on luxury demand despite short-term pressures.
📊 Future outlook
Farfetch revised its 2022 outlook, expecting 5%-10% Digital Platform GMV growth and 10%-15% Brand Platform GMV growth. CEO José Neves said the firm is realigning costs for efficiency, aiming to exit 2022 stronger. Macroeconomic uncertainty remains a key challenge.
Will Farfetch’s long-term strategy pay off despite setbacks?
