THE WHAT? Farfetch has announced its results for the fourth quarter and full year 2022. The online luxury fashion retailer posted record revenue of US$2.3 billion for the year ended December 31, 2022, up 3 percent year-on-year, despite a 5 percent drop in Q4 revenue.
THE DETAILS FY 2022 Gross Merchandise Value (GMV), however, was down 4 percent yoy and plummeted 12 percent in the final quarter.
Profit/loss after tax transformed from a US$96.9 million profit in Q4 2021 to a US$176.7 million loss in Q4 2022, driven by a decrease in gross profit of US$55 million and an increase of selling, general and administrative expenses of US$56.8 million, among other reasons.
THE WHY? José Neves, Farfetch Founder, Chairman and CEO, said: “I am proud to report Farfetch adeptly navigated unprecedented macro headwinds throughout 2022 to deliver growth on a constant currency basis, with full year GMV of US$4.1 billion. Our performance also means we captured market share on a three-year stack basis, with GMV nearly doubling since the onset of the COVID-19 pandemic – a truly remarkable accomplishment.
“Farfetch enters 2023 as a significantly more efficient business following our strategic reorganization and cost rationalizations. Our solid start to the year gives me confidence 2023 will be a Year of Execution with growth building throughout the year as we comp the previous year’s macro headwinds and launch exciting new partners to deliver strong growth, Adjusted EBITDA and positive free cash flow. “The mission to be the global platform for luxury is now more relevant than ever, and Farfetch continues to advance towards that exciting vision.”