Farfetch Shares Climb Up As Company Returns to Sales Growth — Retail Bum

Farfetch, the online luxury retailer, exceeded analysts’ expectations with an 8% year-on-year revenue growth during the first quarter of 2023.

The growth comes after the company experienced a decline in sales in the previous two quarters. It benefitted from enhanced inventory, successful partnerships with renowned brands such as Reebok, and robust in-store sales.

After the earnings release, the company’s stock experienced a significant surge of over 17% during after-hours trading, a noteworthy rebound considering it had been trading at levels close to its all-time low.

Furthermore, Farfetch showcased modest improvements in its bottom line. The company managed to reduce its adjusted EBITDA losses by $1 million, bringing them down to $35 million in the first quarter.

These results provide an initial indication of Farfetch’s ability to meet the ambitious growth targets it established in December. The company had informed investors that it foresees its gross merchandise value, which primarily encompasses goods sold on its online luxury marketplace, to expand by up to 22%, reaching nearly $5 billion by the conclusion of 2023 and aiming to achieve $10 billion by 2025.