A concrete sign of this trend was a 53 percent increase to $306 million in the gross merchandise value reached by Farfetch in its third quarter. The high-end e-tailer, which went public a few weeks ago (see our previous issue), said the growth was double the rate of the industry.
José Neves, founder, chief executive and co-chairman of Farfetch, said he believed that online sales of luxury products will expand by $100 billion in the next ten years. The number of active Farfetch customers jumped by 42 percent to 1,216,000 in the last quarter. The number of orders grew to 662,500, each of them worth on average $584.
Actual revenues expanded by 52.1 percent to $132.2 million in the quarter. On the other hand, Farfetch booked a net loss of $77.2 million, up from $28.2 million in the same period a year ago. The gross margin declined to 51.0 percent and the negative adjusted Ebitda margin remained at 29.3 percent.
During the quarter, to expand its reach in the Chinese market, Farfetch agreed to acquire a Chinese digital technology company, CuriosityChina, and completed the integration with JD.com for the operation of its third-party warehouse in Shanghai.