Luxury Fashion Retailer Farfetch Sees Decline in Q2 Sales and Gross Profit

  • Farfetch’s revenues decreased by 1.3% in Q2 2023
  • Brand Platform Revenue dropped by 42.2% to $67.4m (£52.96m)
  • In-Store Revenue declined by 15.1% to $22.7m (£17.84m)
  • Digital Platform Revenue increased by 10.5% to $482.0m (£377.18m)
  • Gross profit dropped from $267m (£210.6m) in Q2 2022 to $242.9M (£191.1m) Q2 2023
  • Gross profit margin decreased by 370 bps year-over-year to 42.5%
  • Adjusted EBITDA declined to a loss of $30.6m (£24.05m) in Q2 2023, down 26.2%
  • Farfetch expects revenue of approximately $2.5bn (£1.96bn) for FY 2023 and Adjusted EBITDA Margin to increase by 1%
  • CEO José Neves remains confident in the company’s strategic vision and growth potential

Farfetch, a luxury fashion retailer, has reported a decrease in revenues to $572.1m (£450.1m) during the second quarter of 2023, down from $579.3m (£455.7m) in Q2 2022. The decline was primarily due to a 42.2% drop in Brand Platform Revenue and a 15.1% decrease in In-Store Revenue. However, Digital Platform Revenue increased by 10.5%. Gross profit dropped from $267m (£210.6m) in Q2 2022 to $242.9M (£191.1m), with a gross profit margin decrease of 370 bps year-over-year. Adjusted EBITDA declined by $6.3m (£4.95m) to a loss of $30.6m (£24.05m). Despite these challenges, Farfetch expects revenue of approximately $2.5bn (£1.96bn) for FY 2023 and an increase in Adjusted EBITDA Margin by 1%. CEO José Neves remains optimistic about the company’s strategic vision and growth potential.

Factuality Level: 8
Factuality Justification: The article provides accurate information about Farfetch’s financial performance in Q2 2023, including revenue, gross profit, and Adjusted EBITDA figures. It also includes quotes from the company’s founder and CFO discussing their outlook for the future. The information is presented objectively without any apparent bias or opinion masquerading as fact.
Noise Level: 3
Noise Justification: The article provides relevant information about Farfetch’s financial performance in Q2 2023, including revenue, gross profit, and Adjusted EBITDA figures. It also includes quotes from the company’s founder and CFO discussing their outlook for the future. However, it lacks analysis or context beyond the numbers themselves, making it somewhat limited in its usefulness.
Financial Relevance: Yes
Financial Markets Impacted: Farfetch’s stock price
Financial Rating Justification: The article discusses Farfetch’s financial performance in Q2 2023, including revenue, gross profit, and Adjusted EBITDA. This information can impact the company’s stock price and investor sentiment.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: There is no extreme event mentioned in the article.

Reported publicly: www.retailsector.co.uk