The stock price soared 500%, and Farfetch platform is deeply involved in the $300 billion market!

Farfetch is a British and Portuguese online luxury fashion retail platform founded in 2007 and headquartered in London, selling products from more than 700 boutiques and brands around the world .

According to foreign media reports, Farfetch recently announced that its full-year revenue in 2020 increased by 64% year-on-year to US$1.64 billion (£1.17 billion) . Among them, revenue in the fourth quarter alone increased by 41 % to US$540 million .

The stock price soared more than 500%, and the net profit reached US$770 million

Due to the surge in orders last year and the addition of new customers, Farfetch 's GMV in the fourth quarter of last year increased by about 43% year-on-year to US$1.06 billion. During the same period, the online platform Farfetch 's GMV in the fourth quarter increased by about 49% to US$939.4 million .

Farfetch made a net profit of $770 million (£552 million) in 2020. Thanks to its outstanding performance over the past 12 months , Farfetch's share price has soared by more than 500% .

Jose Neve, founder , chairman and CEO of Farfetch, said : “ In 2020 , the Farfetch platform was tested. But thanks to the strength of our functionality , operational agility and the tireless efforts of more than 5,000 Farfetchers , we rose to the challenge, enabling nearly 1,400 Marketplace sellers and Farfetch platform solution customers to continue to serve millions of luxury consumers around the world . ”

Full-year revenue soared, but losses reached $3.3 billion

Despite the surge in revenue, Farfetch is still losing money, reporting a fourth-quarter after-tax loss of $2.3 billion (£1.65 billion) .

It is reported that the high pre-tax loss includes non-cash impact of $2.1 billion (1.51 billion pounds), higher share prices on the fair value and remeasurement of held items. At the same time, the blockade during the epidemic has severely damaged its physical business.

In the fourth quarter of last year, Farfetch achieved its first quarterly positive adjusted earnings before interest and tax ( EBITDA ). In the final quarter of 2020 , Farfetch's adjusted EBITDA increased to a profit of $ 10 million (£7 million) from a loss of $18 million (£12.9 million ) in the same period of 2019 .

In 2020, Farfetch's after-tax loss was $3.3 billion (£2.36 billion), almost 10 times higher than in 2019 , when it lost $373 million .

Farfetch will break through the siege in 2021 by focusing on the $300 billion market

As 2021 arrives , Farfetch is more vibrant than ever .

Regarding the development goals and directions for 2021, Farfetch's Chief Financial Officer stated that Farfetch will leverage the incredible achievements and unique platform capabilities to date to pursue significant growth opportunities . Farfetch's vision is to become a digital enabler that connects creators, curators and consumers in the global luxury industry , both online and offline .

He added: “ We remain highly focused on this nearly $300 billion market and plan to continue investing to create significant value over the long term . ”

It is reported that Farfetch 's EBIT in the first quarter of this year was positive. Farfetch estimates that the platform 's GMV in the first quarter of this year was between US$740 million and US$770 million. For fiscal year 2021, Farfetch's platform GMV is expected to be between US$3.6 billion and US$3.7 billion, a year-on-year increase of 30% to 35%.

Chief Executive Officer Jose Neve predicts that Farfetch will have 3 million active shoppers on its platform by the end of the fourth quarter of this year , but he believes it can grow that number tenfold over the next five years.

Farfetch

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