The online luxury retailer’s revenue rose 8 percent year on year in the first quarter of 2023, above analyst’s expectations.
Farfetch’s improved inventory, partnerships with brands like Reebok and strong in-store sales contributed to its sales bump. That increase comes after the luxury goods seller reported year-on-year sales drops in the past two quarters.
The company’s stock jumped more than 17 percent in after-hours trading following its earnings release. It had been trading near an all-time low.
Farfetch also reported modest progress to its bottom line. Its adjusted EBITDA losses — or earnings before interest and taxes — decreased by $1 million to $35 million in the first quarter.
The results offer a first glimpse at whether Farfetch can achieve the lofty growth expectations it set back in December. The company told investors it anticipates its gross merchandise value — a measure of goods primarily sold through its online luxury marketplace — will grow as much as 22 percent to nearly $5 billion by the end of 2023 and reach $10 billion by 2025.
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Farfetch Stock Plunges Following 2023 Forecast
Shares ended at an all-time low as the online luxury marketplace outlined the cost of unlocking revenue from new retail partnerships.
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