British fashion retailer Farfetch Limited failed to meet market expectations in the first quarter of 2022. The current results, which the e-commerce specialist presented on Thursday evening, missed the analysts’ forecasts.
Founder and CEO José Neves believes that the company is fundamentally well positioned, but also announced reforms in view of the current situation: “Our core business remains very strong, although the macroeconomic events in China and the cessation of operations in Russia have impacted our results and prospects”. , he explained in a statement. “We look forward to focusing our efforts in 2022 on further streamlining our business and adjusting our fixed cost profile to accommodate lower near-term growth. I believe this will position us to end 2022 in a position of strength.”
In the first quarter, Farfetch generated $514.8 million in revenue, up 6.1 percent year-over-year. In contrast, gross merchandise volume (GMV), which also includes the sales of partner brands on the online platform, grew by only 1.7 percent to USD 930.8 million.
Due to significantly increased costs, the company had to accept a higher operating loss. This rose from 118.4 million US dollars in the same quarter last year to 160.9 million US dollars (+35.8 percent). The deficit before interest, taxes, depreciation and amortization (EBITDA) adjusted for special effects grew from 19.2 to 35.8 million US dollars (+86.4 percent). However, net income attributable to shareholders increased by 43.6 percent to US$734.3 million (€685.4 million) due to the revaluation of financial instruments.