Farfetch Limited (NYSE: FTCH) shares soared by as much as 30% on Friday after the Company reported narrower losses than expected and in-line revenue estimates.
For the quarter, Farfetch reported earnings loss of USD 0.18 per share on revenue of USD 255.48 Million. Wall Street analysts anticipated earnings loss of USD 0.25 per share.
Revenue during the quarter improved from USD 134.54 Million in the same quarter a year ago, driven by growth in its digital platform services. Digital platform services revenue totaled USD 156.47 Million compared to USD 108.65 Million a year ago.
Digital platform GMV improved to USD 420.266 Million versus USD 305.88 Million a year ago, leading to a profit of USD 83.29 Million at the end of the quarter.
Active consumers totaled 1,889 compared to 1,240 in the third quarter of fiscal 2018. Average order value in the marketplace was USD 582.00, slightly lower than USD 585.00 a year ago. Meanwhile, average order value in stadium goods was USD 327.00.
Farfetch’s brand platform reported revenues of USD 62.67 Million. Brand platform GMV totaled USD 62.67 Million as well, leading to a profit of USD 27.46 Million.
“I am very pleased with our continued progress in building the global platform for luxury. We had a fantastic Q3, beating all our expectations, and continuing to capture market share at a rapid pace. With USD 1.8 billion of Digital Platform GMV and 1.9 million Active Consumers over the last twelve months, Farfetch is firmly established as the #1 in-season luxury player online,” said José Neves, Farfetch Founder, Chief Executive Officer and Co-Chair.
“Through our revolutionary technology, services and reach, we will continue to deliver an amazing service to our community of over 1,200 brands and boutiques, while also delighting fashion lovers around the world. We also remain focused on driving the cultural relevance of the Farfetch brand, and in that context I am delighted with our initial progress in integrating New Guards Group. A huge congratulations to all the brilliant Farfetchers who have worked so relentlessly across our global business to achieve these remarkable results,” concluded Neves.
As for the fourth quarter, Farfetch is expecting digital platform GMV to grow between 30% to 35% year-over-year, while brand platform GMV is projected to fall in between USD 80 Million to USD 90 Million. Adjusted EBITDA loss is expected to be in the range between USD 21 Million to USD 31 Million.