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Farfetch goes from losses to profits and increases revenue - Technologies

Farfetch goes from losses to profits and increases revenue – Technologies

The luxury fashion retail platform reported revenue of $583 million in the fiscal third quarter ended September 30, up 33% year-over-year.

The company also reported after-tax earnings tonight of $769.1 million, compared to a loss of $536 million the year before. This positive net result includes a non-cash advantage of $901 million – which stems from the positive impact of lower stock prices in this period on the convertible bonds issued by Farfetch.

That equates to earnings per share of $2.09, versus a loss of $1.58 in the same quarter last year.

On adjusted terms, the company experienced a loss per share of $0.14, which is an improvement from a loss of $0.17 per share in the third quarter of 2020.

Adjusted EBITDA also improved, going from negative $10.3 million to positive 5.3 million between July and September of this year.

Gross merchandise value (GMV – gross merchandise value) exceeded $1 billion in the first quarter, a growth of 28% over the same period in 2020.

Portuguese José Neves – Farfetch’s founder, chairman and CEO – said he was excited that the company continued its history of aggressively acquiring market share.

“We are seeing strong momentum in the industry [da moda de luxo] behind our platform strategy. Over 1,400 brands and retailers are not only listing more luxury products than ever before, they are also driving Farfetch Media Solutions’ revenue to record levels in recognition of our valued customers.”

The company’s shares, which have been listed since September 2018 on the New York Stock Exchange, ended the regular session Thursday adding 1.06% to $45.59, but now they continue to fall 23.2% to $35 in After Hours.

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Last Friday, November 12, the company saw shares rise more than 20% in the Wall Street session, the day it announced its entry talks to expand partnership with Swiss competitor Richemont, The watch and jewelry giant and owner of Cartier, which is considered one of the competitors of the Portuguese-British company Yoox Net-a-Porter.

The company confirmed, through a press release, that it is in “discussions with Richemont regarding the possible expansion of its strategic partnership based on Luxury New Retail.”

About a year ago, Farfetch raised an investment of $1,150 million (about €971 million) by tech giants Alibaba and Richemont.

Farfetch, which is headquartered in London, is present in many global markets, including the Chinese market, where it is located in Alibaba’s Tmall Luxury Pavilion, with a reach of 779 million customers. Farfetch was established in 2007.