Farfetch, the luxury fashion marketplace, has released its financial results for Q4 and the full year of 2022. The company acknowledges that it faced “unprecedented macro headwinds” throughout the year, which impacted its performance. While the results were solid, rather than exceptional, Farfetch remains optimistic about its trajectory.

In Q4, Farfetch’s gross merchandise value (GMV) decreased to $1.14 billion, compared to $1.29 billion the previous year. For the full year, GMV fell to $4.1 billion from $4.23 billion. Q4 revenue dropped to $629 million from $665 million, but annual revenue increased to $2.3 billion from $2.2 billion. Adjusted revenue in Q4 fell to $545 million from $571 million, while for the year it rose to $1.99 billion from $1.92 billion.

During the quarter, Farfetch experienced a loss after tax of $176.6 million, compared to a profit of $96.9 million the previous year. However, for the full year, Farfetch made a profit of $344 million, significantly down from the $1.47 billion profit in the previous year.

Farfetch’s digital platform plays a significant role in its business. In Q4, the digital platform’s GMV was $1 billion, compared to $1.14 billion in the previous period. For the full year, digital platform GMV amounted to $3.5 billion, a decrease from $3.6 billion the previous year. The brand platform GMV in Q4 was $100 million, down from $117 million, and $455 million for the year, down from $467 million.

Despite the challenges faced, Farfetch achieved a record full-year revenue, with a 3% increase compared to the previous year. On a currency-neutral basis, revenue rose 12%. While headline GMV decreased by 4% for the year, it increased by 2% on a currency-neutral basis. In Q4, revenue decreased by 5% but increased by 2% on a currency-neutral basis. GMV in Q4 decreased by 12%, which translated to a 5% decline on a currency-neutral basis. The brand platform GMV experienced a 15% drop in Q4, equating to a 3% decline on a currency-neutral basis.

The global macro headwinds faced throughout 2022, including the war in Ukraine, surging energy prices, inflation, and the ongoing impact of the pandemic, have disrupted consumer spending worldwide. Supply chain issues have also contributed to lower sales for companies across different price levels.

Farfetch’s founder, chairman, and CEO, José Neves, remains positive about the company’s performance. He highlighted the currency-neutral growth achieved amidst the headwinds and the company’s ability to gain market share. Neves emphasized Farfetch’s efficiency following a strategic reorganization and cost rationalizations. He expressed confidence in 2023 as a “Year of Execution” with strong growth, adjusted EBITDA, and positive free cash flow.

Farfetch also announced the departure of CFO Elliot Jordan by the end of 2023, after more than eight years with the company. A search process will begin to identify his successor. Jordan played a significant role in guiding Farfetch during its transition from a private to a publicly traded company and its listing on the New York Stock Exchange in 2018.

Despite the challenges faced, Farfetch’s annual GMV growth from $380 million to $4.1 billion signifies its expansion and presence in over 190 countries and territories. The company believes it is well-positioned to continue leading the industry and driving profitable growth.

Elliot Jordan’s legacy includes formidable finance and business services teams that have contributed to Farfetch’s success. The company looks forward to a smooth transition and recognizes his contribution as an important building block for its achievements.

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