British Luxury Electronics Business Farfetch Last Quarter Sales Increased By 89.9%

The UK luxury electronics platform Farfetch announced the key financial data for the third quarter of fiscal year 2019. During the quarter, Farfetch integrated the New Guards Group business of Italy multi brand group which was acquired in August this year. As a "brand platform" business, it entered into the third quarter financial data, so sales data increased significantly, but the loss rate also expanded.

After the news, Farfetch fell 6.97% to 7.48 dollars on that day, but in today's pre trading, the share price rebounded sharply from 24% to 9.25 dollars per share.

In the third quarter, thanks to the integration of Farfetch's New Guards Group business and the strong growth of Farfetch digital platform business and store business, Farfetch's total turnover in the quarter increased by 58.7% to $492 million, net sales increased 89.9% to $256 million, and gross profit increased 70.9% to 115 million dollars.

Elliot Jordan, chief financial officer of Farfetch, said: "the performance in the third quarter was excellent, far ahead of our expectations. At the same time, we are glad that New Guards Group has made initial progress in its related business integration. In the future, we will continue to provide services for more than 1 million 900 thousand active users and more than 1200 brands and boutiques. "

In addition, as the second largest market of Farfetch, the Chinese market also achieved strong growth in the same quarter. Farfetch's cooperation with WeChat platform has greatly promoted the growth of China's market this quarter. Farfetch chief executive Jose Neves said in a conference call: "it is estimated that by 2025, the proportion of Chinese luxury goods business in the Farfetch market will grow to about 45%. The performance of iOS and Android application platform as well as WeChat platform is very eye-catching. Therefore, we still believe in the potential of China's future market growth.

　　 With the rapid growth of sales volume, the loss margin of Farfetch is also expanding. Also affected by the acquisition of New Guards Group and other investment effects, plus depreciation and amortization expenses, the loss in the third quarter of the year after adjustment of interest tax depreciation and amortization increased by 10.3% to 35 million 600 thousand US dollars, and net loss increased 10.6% to 85 million 500 thousand US dollars over the same period last year.

In view of the expansion of the quarterly losses, Elliot Jordan said in a conference call that the loss in the third quarter after the adjustment of interest tax depreciation and amortization was "better than expected", and one of the most important reasons for the loss was the increase in costs. The total expenditure in the third quarter amounted to 195 million US dollars in the third quarter.

In August this year, Farfetch announced that it would buy the exclusive dealer of the designer brand Off-White at the price of 675 million US dollars, and all the shares of New Guards Group of Italy multi brand group, which owns several new trend brands.

As of September 30th this year, the key financial data for the third quarter of Farfetch 2019 fiscal year are as follows:

Total turnover increased by 58.7% to $492 million over the same period.

Digital platform: total turnover increased by 37.4% to US $420 million.

Brand platform: the total turnover is US $62 million 670 thousand.

Physical stores: total turnover increased to $9 million 77 thousand.

Net sales rose 89.9% to $256 million last year.

Revenue from digital platform services: net sales increased 44% to $156 million.

Sales revenue of digital platform: net sales increased 25% to $27 million 254 thousand

Brand platform: net sales amounted to US $62 million 670 thousand.

Physical stores: net sales increased 121.9% to $9 million 77 thousand.

Gross profit increased 70.9% to $115 million compared to the same period last year.

Digital platform: gross profit $83 million 290 thousand

Brand platform: gross profit $27 million 460 thousand

Physical stores: gross profit $4 million 380 thousand