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The world’s leading online luxury goods retail platform has reported good economic results for its first quarter of 2022 despite the dark clouds brought by the situation in Ukraine-Russia and China; while it remains in talks with Richemont about signing a partnership agreement.
Farfetch, which has very quickly become the market leader in the sale of fashion and luxury products, has nevertheless achieved a good first quarter. In the first quarter ended March 31, 2022, its revenue increased 6.1 percent year over year to $514.8 million (about €478.8 million).
In addition, the gross merchandise value (“GMV”) of the Q1 2022 platform amounted to $930.8 million (€865.7 million), an increase of 1.7% year-on-year. As for the gross margin for the first quarter of 2022, it was 44.8%.
However, Farfetch was quick to point out a significant slowdown in sales in the first quarter of 2022, and revenue growth also slowed by 6% in the same period. The causes? Farfetch’s CEO explains it by the confinements perpetrated in China due to the Covid-19 pandemic as well as the war in Ukraine, Russia representing its third largest market.
“Our core business remains very strong, despite the macro events in China and the shutdown in Russia, which have impacted our performance and outlook. We are galvanized by the opportunity to focus our efforts in 2022 to further streamline our business, aligning our fixed cost profile with lower near-term growth, which I believe will allow us to emerge from a position of strength in 2022. Outside of these external factors, we have seen strong market growth in the Americas and Middle East in the first quarter of 2022, our relationships with customers and luxury brands are strengthening, and we continue to make progress toward our mission of building the global luxury platform,” said José Neves, Farfetch’s founder, chairman and CEO.
Elliot Jordan, Farfetch’s CFO said, “I am delighted that Farfetch’s first quarter 2022 results demonstrate our underlying strength and ability to adapt to the changing macroeconomic environment while building on the momentum we have gained over the past few years. We have overcome unprecedented challenges, increased the digital platform’s GMV by 64% over two years and continue to operate at scale in the global luxury market.”
Talks continue with Richemont
In addition, Farfetch continues to assert its place as the platform that offers the most comprehensive selection of luxury fashion online to consumers, with more than 1,400 sellers on its site. It relies on partnerships with major luxury brands to expand its product offering.
The company launched the Off-White brand on its site last month and continued its partnerships with Dolce & Gabbana and Valentino.
However, in an effort to expand its luxury digital offerings, Farfetch has been in negotiations with Swiss luxury group Richemont since last November about signing a partnership agreement with the latter and its subsidiary Yoox Net-à-Porter (YNAP).
While the signing of this agreement would allow Farfetch to invest in YNAP and to offer for sale on its site several luxury brands owned by Richemont, “there are no guarantees” regarding the latter; Jose Neves said. “We will make further announcements, when necessary,” he continued.
The president of Richemont Johann Rupert also said – like Neves – that the discussions were not at a standstill but were still going on; and Richemont CFO Burkhart Grund said that the talks should be concluded in the “near future”. To be continued.
Read also > RICHEMONT REPORTS EXCEPTIONAL RESULTS FOR THE 2021/2022 YEAR
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The world’s leading online luxury goods retail platform has reported good economic results for its first quarter of 2022 despite the dark clouds brought by the situation in Ukraine-Russia and China; while it remains in talks with Richemont about signing a partnership agreement.
Farfetch, which has very quickly become the market leader in the sale of fashion and luxury products, has nevertheless achieved a good first quarter. In the first quarter ended March 31, 2022, its revenue increased 6.1 percent year over year to $514.8 million (about €478.8 million).
In addition, the gross merchandise value (“GMV”) of the Q1 2022 platform amounted to $930.8 million (€865.7 million), an increase of 1.7% year-on-year. As for the gross margin for the first quarter of 2022, it was 44.8%.
However, Farfetch was quick to point out a significant slowdown in sales in the first quarter of 2022, and revenue growth also slowed by 6% in the same period.
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The world’s leading online luxury goods retail platform has reported good economic results for its first quarter of 2022 despite the dark clouds brought by the situation in Ukraine-Russia and China; while it remains in talks with Richemont about signing a partnership agreement.
Farfetch, which has very quickly become the market leader in the sale of fashion and luxury products, has nevertheless achieved a good first quarter. In the first quarter ended March 31, 2022, its revenue increased 6.1 percent year over year to $514.8 million (about €478.8 million).
In addition, the gross merchandise value (“GMV”) of the Q1 2022 platform amounted to $930.8 million (€865.7 million), an increase of 1.7% year-on-year. As for the gross margin for the first quarter of 2022, it was 44.8%.
However, Farfetch was quick to point out a significant slowdown in sales in the first quarter of 2022, and revenue growth also slowed by 6% in the same period.
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