It was a “record-breaking” Q2 for Farfetch, stated founder, chairman & CEO, José Neves. “Our digital platform GMV was an all-time high at $651 million. We attracted more than half a million new consumers – our highest ever, and brands and retailers leaned in to offer the broadest selection of luxury fashion we have ever seen on the marketplace. We’re pleased to support such a large number of the world’s leading luxury brands who are leveraging our global platform to navigate the current landscape, including our top 20 direct brand e-concessions who, together, have benefitted from a doubling of sales year-on-year.”
Farfetch’s Q2 2020 GMV (gross merchandise value) and digital platform GMV growth rates accelerated, up 48% and 34% year-over-year, respectively. The brand’s revenue increased 74% year-over-year to $365 million, during the quarter. Rise in online adoption drove significant volume growth in second-quarter 2020 for Farfetch, with traffic up by over 60%, more than doubling of app installs and the addition of 500,000-plus new customers.
“I believe this ongoing acceleration behind our business results from a paradigm shift in luxury shopping, as the industry undergoes a major acceleration of the secular online adoption, I envisioned in founding Farfetch. We at Farfetch remain dedicated to helping the global fashion community navigate these unprecedented times, connecting luxury’s curators, creators and consumers now and in the years to come,” Neves added.
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Farfetch continued supporting brands and retail partners whose physical stores were closed for most of the quarter, also through its #SupportBoutiques campaign. The campaign is aimed at driving customer engagement with boutique supply and strategic efforts to help brand partners increase direct-to-consumer e-concession sales via the Farfetch marketplace. In addition, Farfetch also continued to offer consumers a broad selection of luxury fashion through partnerships with nearly 1,300 sellers, including over 500 direct brand e-concessions.
“I am delighted by Farfetch’s results this quarter, which highlight the accelerating momentum behind the Farfetch platform. During the period, we saw unprecedented levels of user engagement, mobile app downloads and transactions driven by new consumers, and our ACCESS loyalty program ramped up to 2 million members, which all bodes well for opportunities to drive sustained growth in the future. The strong trajectory of the business, our expanding unit economics and scaling of costs delivered in second quarter 2020 put us squarely on the path towards achieving our targeted adjusted EBITDA profitability in 2021, particularly as we have seen the acceleration behind the business continue into the third quarter,” concluded CFO Elliot Jordan, while commenting on a “record-breaking” Q2 for Farfetch.