Farfetch says the luxury industry has bounced back from the Covid-19 pandemic, as it trials personalised omnichannel experiences for Farfetch shoppers and a reports a 40% rise in sales on its platform.
This month it has launched a Farfetch Connected Retail technology pilot that aims to drive footfall to retailers’ shops. The trial has launched in partnership with a selected group of retail partners.
Farfetch, ranked Leading in RXUK Top500 research, enables shoppers to buy from luxury retailers and brands that sell via its luxury platform, sells its own products through its New Guards brands that include Off-White and Palm Angels, and operates retail websites on behalf of luxury brands from Burberry to Gucci. During the quarter, shoppers could choose 390,000 lines from nearly 1,400 sellers on its platform, sold both by multi-brand retailers and e-concession partners. During the quarter, it launched a 3D shopping experience for Burberry’s Olympia bag and enabled shoppers to try on goods from Chopard’s Happy Sport jewellery collection.
Today it reported sales of $523m in the second quarter of its financial year, 43% up on the same time last year, with full price sales up by 90%, as it supported transactions of £1bn on its platform – 40% up on last year. Adjusted EBITDA (earnings before interest, tax and one-off costs) came in at a loss of $20.6m, narrowing by 18% on last year’s loss. Service revenues from its digital platform grew to 47% to €349.1m, while brand platform revenue of $72.7m was 9.6% up on last time.
José Neves, Farfetch founder, chairman and chief executive, says: “I am truly impressed with the resilience of the luxury industry, which after an unprecedented period, is already back to growth with even stronger fundamentals. I am very proud that Farfetch was a close partner for both retailers and brands in this time, delivering strong growth to our sellers, and as a result doubling our GMV in the last 24 months.
“Our strong performance in second quarter 2021 reflects powerful flywheel dynamics in play at full force. Our stronger Farfetch brand is drawing marketing partnerships and even greater supply from brands to drive a 90% increase in full-price sales year-over-year from the highly valuable luxury audience we have attracted. All this boosts our progress towards becoming the global platform for luxury, as we continue to advance our initiatives in China, Farfetch Platform Solutions, Farfetch Connected Retail and our Luxury New Retail vision.”