Farfetch plunges by 15% as it announces its third-quarter financials for 2021

Fartech Ltd (NYSE: FTCH) is an industry-leading global platform that focuses on luxury fashion items which recently announced its financial reports for the third quarter of 2021 and went down 15% pre-market trading. 

How does the company’s top management feel?

Fartech’s Chairman, Founder, and Chief Executive Officer, Jose Neves, said that he was happy by its continued exceptional track record when it comes to grabbing aggressive market share, especially as it accelerated 2-year stack Digital Platform Gross Merchandise Value growth to 97%. 

Are you looking for fast-news, hot-tips and market analysis?

Sign-up for the Invezz newsletter, today.

He also claimed that they would be able to achieve their goal of full-year GMV growth and Adjusted EBITDA profitability. The company’s Founder and CEO said:

We are seeing strong industry traction behind our platform strategy. Over 1,400 brands and retailers are not only listing more luxury products than ever, but also driving record media solutions revenue in recognition of our highly valuable customers.

Mr. Neves believes that with the accelerated interest in the company’s Luxury New Retail outlook, Farfetch Platform is looking to revolutionize and transform the luxury experience digitization and unlock a lot more opportunity and potential for the company. Fartech’s Chief Financial Officer, Elliot Jordan, said:

I am very pleased by Farfetch’s performance across the third quarter, with GMV more than doubling on a two-year basis and achieving profitability at the Adjusted EBITDA level.

The CFO claimed that their performance showcases that they’re navigating unprecedented market environments, and they continue to achieve sustainable Adjusted EBITDA profitability. 

Recent business highlights

The company’s third-party initiatives brought about 83% of Digital Platform Gross Merchandise Value at a 30.1% take rate in the third quarter of this year. In addition, its growth on a 2-year basis increased sequentially from 89% in the second quarter of 2021 to 97%. 

This growth was driven by key luxury markets such as Russia, Germany, the Middle East, the United Kingdom, Mainland China, and, of course, the United States. 

On the other hand, First-party transactions had a 29% year-over-year growth, which First-Party Original supported. In addition, the company’s marketplace continued to provide its customers with a wide variety of luxury fashion items.