"Luxury is an incredible industry that has proven to be resilient, and Farfetch's global platform for luxury is on pace to broadly double its size over three years, despite navigating an unprecedented series of global events. Through it all, our focus has remained on our mission to be the global platform for luxury while also taking the opportunity to fundamentally re-structure our organization and streamline our cost base. As a result, Farfetch is further positioned to seize the significant announced milestones and future opportunities ahead, and emerge from this period as an even stronger business set to deliver profitability and free cash flow", commented José Neves, Farfetch Founder, Chairman and CEO.

Third Quarter Results

In the third quarter of the current fiscal year, Farfetch's Gross Merchandise Value (GMV) reached 967.4 million US dollars, which represents a decline of 4.9%, as compared to the same period of 2021; however, excluding the impact of changes in foreign change rates, GMV would have grown by 4.2%, year-over-year.

The online retailer's Digital Platform GMV decreased by 5% in this period, amounting to 787.4 million US dollars, on a comparable basis to the same quarter of last year; not including the impact of changes in foreign change rates, it would have increased by 2.6%, year-over-year. Farfetch underlined that these results reflect "continuing headwinds from the suspension of trade in Russia, where trade has been ceased since March 2022, and mainland China, where regional COVID-19 restrictions continue to impact trade", as well as a decrease in the Marketplace AOV.

In the three months to the 30^th of September, the company also recorded a decline in the Brand's Platform GMV of 10.4%, year-over-year, which totalled 148.1 million US dollars; this figure would have grown by 4.9 if the impact of changes in foreign exchange rates had been excluded. Farfetch's In-Store GMV, instead, increased by 35.5% in this quarter, reaching 31.9 million US dollars, as compared to the same period of fiscal 2021 (excluding the impact of changes in foreign exchange rates, In-Store GMV would have risen by 54.1%, year-over-year).

Farfetch's revenue grew by 1.9% in the third quarter of fiscal 2022, reaching 593.4 million US dollars, on a comparable basis to the same period of the previous year. This growth "was driven by an increase in Digital Platform Revenue of 1.6%, a 39.7% growth in In-Store Revenue, offset by a 2.1% decrease in Brand Platform Revenue". Discounting the impact of changes in foreign exchange rates, revenue would have increased 14.1%, year-over-year.

In the third quarter of 2022, the company's adjusted EBITDA was down by 9.4 million US dollars, amounting to 4.1 million US dollars, and the adjusted EBITDA margin declined from 1.1% to negative 0.8% this quarter, on a comparable basis to the same period of the prior year, mainly "due to higher growth in general and administrative expenses".

The e-commerce luxury platform reported a third quarter loss after tax of 274.9 million US dollars in the third quarter of the current year, as compared to a 769.1 million US dollars profit in the same quarter of 2021.

Fiscal 2022 Outlook

Farfetch has revised its full year guidance, and is now anticipating a Digital Platform GMV decline of 5% to 7% and a Brand Platform GMV broadly flat, as compared to the prior year. It is also expecting a negative adjusted EBITDA margin in the range of 3% to 5%.