Farfetch, a leading online luxury fashion platform, experienced a decrease in revenue during the second quarter ending on 30th June 2023, despite an increase in its active consumer base.
The company’s revenue saw a year-on-year decline of £ 5.7 million, settling at £ 449 million which is a result of 42.2 per cent drop in brand platform revenue and a 15.1 per cent decrease in in-store revenue.
These declines were balanced by a 10.5 per cent growth in digital platform revenue, though the gross profit also took a hit, amounting to £ 190 million, with a gross profit margin of 42.5 per cent.
Despite these challenges, the company witnessed a positive trajectory with multi-brand retailers and e-concession partners increasing their supply by over 40 per cent, totaling nearly 17 million stock units.
Additionally, Farfetch’s active consumer base expanded to 4.1 million, supported by an enhanced mix of personalized communications that led to higher conversion rates.
Elliot Jordan, CFO at Farfetch, said, “I’m pleased with our second quarter performance, which demonstrates our progress towards delivering profitable growth and positive free cash flow in 2023. Our Digital Platform has performed particularly well, returning to growth while maintaining a stable order contribution margin.”
