In the months of incarceration in most countries (April through June), revenues from Farfetch, the online luxury fashion store, rose 74% year over year to $ 365 million. The after-tax losses more than quadrupled compared to the same months of 2019: from 95 million to 436 million US dollars. This is evident from the results released this Thursday after the New York Stock Exchange closed.
Revenue for the José Neves-led company increased 34% year over year to $ 721.310 million in the second quarter of the year.
According to José Neves, the company̵
(…) We attract more than half a million new consumers – The highest value ever, and brands and retailers have come together to offer the widest range of luxury fashion we have ever seen in the marketplace. We are excited to support a very large number of the world’s leading luxury brands who are using our global platform to navigate the current scenario, ”said the Portuguese entrepreneur.
“I believe that this continuous acceleration of our business is the result of a Paradigm shift in luxury shopping“He added. When presenting the results, José Neves even spoke of a” significant shift in consumer demand online “with the Covid-19 pandemic. In the first quarter of the year, which was also marked by the pandemic, the company had Raised $ 611 million, with sales up 90% and after-tax losses “relatively unchanged”.
Farfetch issues 611 million bills during the pandemic, with losses reaching 79 million
In turn, Elliot Jordan, the New York Stock Exchange company’s finance officer, says the second quarter results “show the moment the platform is accelerating.” From April through June, we “saw unprecedented levels of user interaction, mobile application downloads, and transactions driven by new consumers.”
The official believes that “the strong development of the business” puts the company “on track” to generate profits in 2021, “especially when we saw the acceleration of business continue into the third quarter”. This goal was announced back in February of this year by Elliot Jordan and repeated by Luís Teixeira, who is responsible for Farfetch, in an interview with the Observer.
Farfetch: “The market is not looking at losses, it is concerned that this is a business with solid operating results.”
Indeed EBITDA [isto é, os lucros antes de juros, impostos, depreciações e amortizações] Adjusted, improved from Q2 2019 – up from $ 37.576 million to $ 25.175 million, “advancement” on our goal of making the company profitable for the next year.
The market reacted strongly to the presentation of the results. Farfetch shares rose more than 4% after the results for the second quarter of 2020 were released.
Farfetch was founded in 2008 by José Neves, is based in London and has been listed on the New York Stock Exchange since September 21, 2018. It was the first Portuguese startup to be worth over a billion dollars.