The Business of Fashion
Agenda-setting intelligence, analysis and advice for the global fashion community.
Agenda-setting intelligence, analysis and advice for the global fashion community.
The e-commerce company reported earnings for the quarter ending March 31, 2021, also highlighting growth in its gross merchandise value of 50 percent to $916 million from last year.
“Our brand partnerships have never been stronger, and our customer and brand building initiatives are resonating well to drive awareness of our value proposition and retention of our valuable consumers,” Farfetch founder and CEO José Neves said in a press release. “I am also very enthused by the positive consumer reaction to our recent launch on Tmall’s Luxury Pavilion, and the momentum building behind our Luxury New Retail vision as we see it being adopted by luxury partners around the world.”
The strong first quarter earnings results come amidst a luxury e-commerce boom, propelled by the pandemic. Farfetch also continues to make a bid to consumers that it is the go-to e-commerce destination over competitors in the crowded space.
Farfetch shares soared in 2020 along with sales, but the stock is down nearly 50 percent from its February peak.
Read more about Farfetch in BoF’s case study, “Inside Farfetch’s Bid to Dominate Luxury E-Commerce.”
The luxury goods maker is seeking pricing harmonisation across the globe, and adjusts prices in different markets to ensure that the company is”fair to all [its] clients everywhere,” CEO Leena Nair said.
Hermes saw Chinese buyers snap up its luxury products as the Kelly bag maker showed its resilience amid a broader slowdown in demand for the sector.
The group’s flagship Prada brand grew more slowly but remained resilient in the face of a sector-wide slowdown, with retail sales up 7 percent.
The guidance was issued as the French group released first-quarter sales that confirmed forecasts for a slowdown. Weak demand in China and poor performance at flagship Gucci are weighing on the group.