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 luxury e-commerce retailer reported revenue increased 43 percent year-over-year in the second quarter. The company’s gross merchandise value was up 40 percent this year, and double compared to Q2 of 2019 — exceeding $1 billion.
“I am truly impressed with the resilience of the luxury industry, which after an unprecedented period, is already back to growth …” said José Neves Farfetch founder and chief executive in a press release. “Our stronger Farfetch brand is drawing marketing partnerships and even greater supply from brands to drive a 90 percent increase in full-price sales year-over-year from the highly valuable luxury audience we have attracted.”
Farfetch’s strong earnings come in the midst of recovery in the luxury sector after a tough pandemic year — with Kering, LVMH, and Richemont all posting stellar results as consumers spend coming out of lockdown.
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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.
Consumers face less, not more, choice if handbag brands can't scale up to compete with LVMH, argues Andrea Felsted.
As the French luxury group attempts to get back on track, investors, former insiders and industry observers say the group needs a far more drastic overhaul than it has planned, reports Bloomberg.