Farfetch Limited (FTCH) Tops Q3 EPS by 19c

Farfetch Limited (NYSE: FTCH) reported Q3 EPS of ($0.18), $0.19 better than the analyst estimate of ($0.37). Revenue for the quarter came in at $255.48 million versus the consensus estimate of $243.55 million.

• Exceeds Q3 2019 Guidance - Beats on Both Digital Platform GMV and Adjusted EBITDA Margin
• Strong Outlook for Q4 2019 - Raises Expectations for Adjusted EBITDA and Reiterates Platform GMV Growth Rate
• Continued to Expand Share of Online Luxury Market - Q3 2019 Digital Platform GMV of $420 million, Up 37% Year-Over-Year, or approximately 40% on Constant Currency Basis
• Stronger Unit Economics - Digital Platform Order Contribution Margin Up to 31% and Gross Margin to 45% in Q3 2019, From 28% and 41%, Respectively, in Q2 2019
• Adjusted EBITDA Loss Margin Improved to (16)% from (29)%, Loss After Tax Margin Improved to (33)% from (57)% Year-Over-Year
• Expands Direct Brand and Boutique Network to More Than 1,200 Partners, Maintains 100% Retention of Top 100 Brand Partners Over Past Three Years
• New Guards Group Contributes to Q3 Financial Performance, Integrations with Marketplace and Farfetch Platform Solutions Underway

José Neves, Farfetch Founder, CEO and Co-Chair said: “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 $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. 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.”

Elliot Jordan, CFO of Farfetch, said: “Our third quarter 2019 results demonstrate focused execution against our core strategy, which resulted in strong digital platform GMV growth of 37% year-over-year, extending our market leading position, balanced with Order Contribution Margin increasing quarter-over-quarter to 31.3%. We are also pleased by the early strategic and financial benefits from the acquisition of New Guards Group, which, coupled with the stronger unit economics and continued operating leverage in our digital platform, have contributed to a significant year-over-year improvement in EBITDA margin.”

Outlook

The following forward-looking statement reflects Farfetch’s expectations for fourth quarter 2019 as of November 14, 2019:

• Digital Platform GMV growth of 30% to 35% year-over-year
• Brand Platform GMV of $80 million to $90 million
• Adjusted EBITDA loss of approximately $(21) million to $(31) million

The expected Adjusted EBITDA loss for the period includes the estimated impact from the adoption of IFRS 16, which became effective on January 1, 2019.

For earnings history and earnings-related data on Farfetch Limited (FTCH) click here.

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