Luxury platform Farfetch achieved a turnover of more than a billion dollars in?2019, for the first time in its history. On the other side, its losses have increased considerably.
Turnover continues to rise sharply
Farfetch achieved a turnover of 1.02?billion dollars (930?million euros) last year, an increase of 69% compared to 2018. The Gross Merchandise Volume increased from 1.41?billion to 2.14?billion dollars (1.9?billion euros). The adjusted EBITDA lowered further, from -?95.7?million dollars to -?121.4?million dollars (-?110?million euros). In relative terms, turnover (+?69.5?%) rose much more than the operating loss (+?26.8?%).
Both evolutions were even stronger in the fourth quarter of?2019: turnover doubled to 382?million dollars (340?million euros), but the loss after tax increased more than tenfold from 9.9?million dollars to 110?million dollars (100?million euros). The GMV increased by 60?% to 740?million dollars (670?million euros).
In?2020, Farfetch wants to increase the GMV by 40?to 45?% to at least three billion dollars (2.7?billion euros). The company expects the adjusted EBITDA to fall to 70?to 80?million dollars (65?to 70?million euros). As usual, the press release contained a coronavirus warning: CEO José Neves says that he is pleased that "there has not been a material impact to the business" and that "the Farfetch model [is] particularly resilient to the situation". Yet Neves also has to admit that the future would look "uncertain" if the crisis spread much further.