The luxury online retailer reported a slight 1,9% increase in revenue and a 4.9% decrease in GMV (gross merchandise value) in the third quarter of 2022 compared to the same period last year, reflecting a decrease in activity on the trading platform and downgrades its financial guidance for the year, writes Worldfootwear.com
In the third quarter of the current fiscal year, Farfetch's (GMV) gross merchandise value reached $967,4 million, a 4,9% decrease compared to the same period in 2021, but excluding currency fluctuations, GMV would have grown by 4,2% on an annualized basis.
The GMV of the online retailer's Digital Platform decreased by 5% to $787,4 million in the reporting period compared to the same quarter last year, excluding currency fluctuations, it would have increased by 2,6% year on year.
Farfetch emphasizes that these results reflect the impact of the suspension of trade in Russia, where the retailer ceased trading in March 2022, and the ongoing lockdown in mainland China, as well as a decrease in the average check on the marketplace.
In the third quarter of 2022, the company's adjusted EBITDA decreased $9,4 million to $4,1 million, and its adjusted EBITDA margin decreased from 1,1% to minus 0,8% in the quarter compared to the same period a year earlier, largely "due to higher growth in general and administrative expenses".
It also reported a loss of $274,9 million in the third quarter of this year compared to a profit of $769,1 million in the same quarter of 2021.