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 online luxury retailer’s revenue rose 8 percent year on year in the first quarter of 2023, above analyst’s expectations.
Farfetch’s improved inventory, partnerships with brands like Reebok and strong in-store sales contributed to its sales bump. That increase comes after the luxury goods seller reported year-on-year sales drops in the past two quarters.
The company’s stock jumped more than 17 percent in after-hours trading following its earnings release. It had been trading near an all-time low.
Farfetch also reported modest progress to its bottom line. Its adjusted EBITDA losses — or earnings before interest and taxes — decreased by $1 million to $35 million in the first quarter.
ADVERTISEMENT
The results offer a first glimpse at whether Farfetch can achieve the lofty growth expectations it set back in December. The company told investors it anticipates its gross merchandise value — a measure of goods primarily sold through its online luxury marketplace — will grow as much as 22 percent to nearly $5 billion by the end of 2023 and reach $10 billion by 2025.
Learn more:
Farfetch Stock Plunges Following 2023 Forecast
Shares ended at an all-time low as the online luxury marketplace outlined the cost of unlocking revenue from new retail partnerships.
Antitrust enforcers said Tapestry’s acquisition of Capri would raise prices on handbags and accessories in the affordable luxury sector, harming consumers.
As a push to maximise sales of its popular Samba model starts to weigh on its desirability, the German sportswear giant is betting on other retro sneaker styles to tap surging demand for the 1980s ‘Terrace’ look. But fashion cycles come and go, cautions Andrea Felsted.
The rental platform saw its stock soar last week after predicting it would hit a key profitability metric this year. A new marketing push and more robust inventory are the key to unlocking elusive growth, CEO Jenn Hyman tells BoF.
Nordstrom, Tod’s and L’Occitane are all pushing for privatisation. Ultimately, their fate will not be determined by whether they are under the scrutiny of public investors.