The British fashion retailer Farfetch Limited closed the 2022 financial year with mixed results. In the final quarter in particular, the company felt the effects of the current adverse conditions. In addition to current figures, the group also announced the upcoming departure of Chief Financial Officer (CFO) Elliot Jordan on Thursday. The long-time chief financial officer will resign at the end of 2023, according to a statement.
Last year, Farfetch generated $2.32 billion in revenue, up 3% (+12% at constant currency) from 2021. However, gross merchandise volume (GMV), which also includes the sales of partner brands on the online platform, fell by four percent (+2 percent at constant currency) to US$4.06 billion.
Higher costs resulted in an adjusted loss before interest, taxes, depreciation and amortization (EBITDA) of $98.7 million. In the previous year, Farfetch had still achieved a positive adjusted EBITDA of 1.6 million US dollars. Reported net income, which at Farfetch is largely determined by fluctuating valuations of various financial instruments, shrank 76 percent to $359.3 million (339.3 million euros).
In the fourth quarter, the fashion retailer had to accept a decline in sales of five percent (-2 percent at constant currency) to 629.2 million US dollars. GMV even shrank by 12 percent (-6 percent at constant currency) to $1.14 billion. In addition to the generally challenging macroeconomic conditions, the company blamed the cessation of business in Russia last spring and pandemic-related problems in China for the decline.
For 2023, the management forecast a positive development despite numerous uncertainties. With GMV, an increase to around 4.9 billion US dollars is aimed for, the EBITDA margin adjusted for special effects, which was -4.9 percent in 2022, is to be improved to one to three percent.