Farfetch Limited GMV increased by 286.5 million dollars in the second quarter to 1,007.8 million dollars, representing year-over-year growth of 39.7 percent. Digital platform GMV of Farfetch Limited increased by 262.3 millions dollars to 913.4million dollars. This represents a 40.3 percent increase. The company stated that digital platform GMV would have increased 33.3 percent if it did not take into account the effects of foreign exchange rate changes.
The company’s revenue increased by 158.6 million dollars to 523.3 million dollars in the second quarter, representing growth of 43.5 percent. According to the company, 47.1 percent of digital platform revenue increased to 433 millions dollars. Overall growth was affected by 9.6 percent brand platform revenue growth.
Commenting on the second quarter results, Jose Neves, Farfetch founder, chairman and CEO said in a statement: “I am very proud that Farfetch was a close partner for both retailers and brands in this time, delivering strong growth to our sellers, and as a result doubling our GMV in the last 24 months.” The company saw a year-over-year increase in transactions through Farfetch platform solutions websites during the second quarter. This was primarily due to growth within first-party companies like BrownsFashion.com and Off–White.com.
The company further said that the increase in digital platform services revenue of 46.9 percent was driven by 40.3 percent overall growth in digital platform GMV with digital platform services first-party GMV, increasing 63.9 percent to 140.5 million dollars. Digital platform fulfilment revenue grew by 47.6%, surpassing digital platform GMV growth which was 40.3 percent.
In-store revenue increased by 349.2 percent to 17.6 million dollars and was primarily driven by revenue from additional New Guards portfolio brand stores opened within the last twelve months, as well as strong year-over-year growth due to temporary store closures in second quarter 2020, related to Covid-19 restrictions. Due to digital platform services and in-store growth, the gross profit margin grew by 30 bps to 44% from 43.7%.
Profit after tax increased by 523.8 million dollars from a loss of 435.9 million dollars to a profit of 87.9 million dollars in the second quarter 2021. Basic EPS for the second quarter was 24cs, while diluted EPS was 31cs.
Adjusted EBITDA improved by 4.6 million dollars to negative 20.6 million dollars in the second quarter, while adjusted EBITDA margin improved from negative 8.2 percent to negative 4.7 percent.