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Farfetch turns from losses to profits in the first quarter - companies

Farfetch turns from losses to profits in the first quarter – companies

Portuguese luxury online retailer José Neves reported a profit of $ 516.66 million between January and March, versus a loss of 79.17 million the previous year.

This net result includes 660 million “non-cash” benefits arising from the effect of a decrease in the share price, on the items held at fair value and on the volume change, confirming the company in its presentation of the accounts.

Earnings per share attributable to stockholders was $ 1.44, versus a loss of 0.24 cents per share in the first three months of 2020.

Also worth noting is a 46.4% (or 153.6 million) revenue increase year-on-year, which totaled $ 485 million, accompanied by an improvement in the digital platform’s order margin contribution to 33%.

Adjusted EBITDA improved to negative 19 million compared to negative 22 million in the first quarter of last year.

On the other hand, the total merchandise value (Total Merchandise Value – GMV) increased by 50% and the digital GMV value (which is the total volume processed by the digital platform) increased by 60% year on year, representing respectively 916 million and 790 million dollars. .

“Farfetch had a great start to the year in 2021, with a stronger-than-expected business acceleration during the first quarter and growth forecasts for the year as a whole higher than initially anticipated,” the report notes. Accounts of the CEO of the company.

Jose Neves said he was more confident than ever in the company’s ability to capitalize on the “significant growth opportunities” he envisioned as a digital enabler for the global luxury industry – “an opportunity approaching $ 300 billion that we are still very focused on.”

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The shares of the London-based company, listed since September 2018 on the New York Stock Exchange, continued to achieve returns of 1.24% to reach $ 36.78 in “after hours” from the New York market, after dropping more than 5%, in a sign of favor on the part of investors after digging the numbers. .

(The news was updated at 22:14)