It will certainly take more time for Farfetch to make a profit, as it has been the case for older e-tailers like Amazon and Zalando. While the online luxury marketplace grew more strongly than expected in the first quarter ended on March 31, with its revenues rising by 38.6 percent to $174.1 million, its stock price fell by 16.8 percent after it reported a jump of 115 percent in its net losses to $109.3 million. The stock price recovered slightly afterwards, but it's still well below that of its IPO last September.
On an adjusted basis, the Ebitda margin improved by 2.2 percentage points to a still negative level of 20.7 percent and the operating loss more than doubled to $85.5 million, due in part to the stronger dollar and a 62.3 percent increase in marketing expenses, which represented 22.2 percent of platform revenues. The management expects that the Ebitda margin will remain negative in a range of 19 to 21 percent for the full financial year.
On the positive side, the platform's gross merchandise volume (GMV) grew by 44 percent to $415 million, with an increase of 50 percent in local currencies. Revenues from platform services went up by 43.2 percent to $141.8 million. The number of active customers was up by 64 percent from a year ago.
Along with the recent acquisition of Stadium Goods and Toplife, the company benefited from contracts with new clients and a higher number of transactions conducted through the rising number of its websites and its collaboration with JD.com in China.