Luxury Fashion Platform Farfetch Reports Record Growth and Adjusted EBITDA Milestone
- Farfetch’s revenues hit $2.3bn in FY21
- Revenues increased 35% YoY for full-year ended December 31, 2021
- Q4 revenues up 23% YoY to $666m (£497.66m)
- Profit-after-tax of $97m in Q4 including a $217m non-cash benefit from lower share price
- Adjusted EBITDA of $36m for full-year with 47.1% gross profit margin in Q4 FY21
- Record GMV of $4.2bn (£3.13bn) for the full year, up 33% YoY and 98% compared to pre-Covid levels
- Digital platform GMV rose 22% YoY in Q4 to $1.3bn (£9.71m)
- Founder José Neves: ‘positioned for an incredible 2022’
- CFO Elliot Jordan: ‘achieved first full-year of profitability at Adjusted EBITDA level’
Farfetch Limited, a global platform for the luxury fashion industry, reported a 35% year-on-year increase in revenues to $2.3bn (£1.71bn) for the full-year ended December 31, 2021 (FY21). In Q4, revenues rose 23% year-on-year to $666m (£497.66m), with profit-after-tax reaching $97m (£72.48m) including a $217m (£162.15m) non-cash benefit from the impact of lower share price on items held at fair value and remeasurements. The company also achieved a ‘record’ gross merchandise value (GMV) of $4.2bn (£3.13bn) for the full year, up 33% year-over-year and up 98% compared to pre-Covid levels. GMV and digital platform GMV also grew 22% year-over-year in Q4 to $1.3bn (£9.71m) and $1.1bn (£8.21m), respectively. Farfetch’s founder, chairman, and CEO, José Neves, said: ‘We exit the year having once again delivered market share capturing GMV growth in 2021 along with our first year of adjusted EBITDA profitability. This positions Farfetch for an incredible 2022 focused on continuing to lead the online luxury fashion industry.’ Farfetch CFO Elliot Jordan added: ‘This completes a milestone year for Farfetch in which we added over $1bn in GMV, growing 33% year-over-year, and achieved our first full-year of profitability at the Adjusted EBITDA level. Our investments continue to deliver significant operating cost leverage and we are well positioned for further market share capture and profitability gains in the year ahead.’
Factuality Level: 10
Factuality Justification: The article provides accurate and objective information about Farfetch’s financial performance, including revenue growth, profits, and key metrics such as GMV and adjusted EBITDA. It also includes quotes from company executives that support the positive outlook for the future.
Noise Level: 3
Noise Justification: The article provides relevant information about Farfetch’s financial performance and growth, including revenue, profits, and GMV. It also includes quotes from company executives discussing their plans for future growth and profitability. However, it lacks in-depth analysis or exploration of the broader implications of these results on the luxury fashion industry or the overall economy.
Financial Relevance: Yes
Financial Markets Impacted: Farfetch Limited’s financial performance impacts its stock price and may affect the luxury fashion industry
Financial Rating Justification: The article discusses Farfetch Limited’s financial results, including revenue growth, profitability, and gross merchandise value, which are relevant to investors and the company’s stock performance. It also mentions the luxury fashion industry, indicating that the company’s financial performance may impact related companies in the sector.
Presence Of Extreme Event: No
Nature Of Extreme Event: Other
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: There is no mention of an extreme event in the article.
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