Farfetch Limited (FTCH) Tops Q1 EPS by 16c, Revenues Beat

Farfetch Limited (NYSE: FTCH) reported Q1 EPS of ($0.24), $0.16 better than the analyst estimate of ($0.40). Revenue for the quarter came in at $485 million versus the consensus estimate of $454.97 million.

• Q1 2021 Gross Merchandise Value and Digital Platform GMV growth of 50% and 60% year-over-year, respectively, to $916 million and $790 million, respectively
• Q1 2021 Revenue increases 46% year-over-year to $485 million
• Q1 2021 Digital Platform Order Contribution Margin improves 100 bps year-over-year to 33%; Gross Profit Margin declines 80 bps year-over-year to 46%
• Q1 2021 Profit After Tax of $517 million includes $660 million non-cash benefit arising from lower share price impact on items held at fair value and remeasurements
• Q1 2021 Adjusted EBITDA improves to $(19) million, from $(22) million in Q1 2020
• Upgrades Digital Platform GMV outlook for full year 2021

José Neves, Farfetch Founder, Chairman and CEO said: “Farfetch is off to a tremendous start in 2021 with stronger than expected acceleration in the business in the first quarter and higher full-year growth expectations than initially anticipated. Our brand partnerships have never been stronger, and our customer and brand building initiatives are resonating well to drive awareness of our value proposition and retention of our valuable consumers. I am also very enthused by the positive consumer reaction to our recent launch on Tmall’s Luxury Pavilion, and the momentum building behind our Luxury New Retail vision as we see it being adopted by luxury partners around the world. I am more confident than ever in our position to go after the significant growth opportunities we see as a digital enabler of the global luxury industry – a nearly $300 billion opportunity which we remain laser-focused on and plan to continue investing behind to deliver significant value over the long-term.”

Elliot Jordan, CFO of Farfetch, said: “I’m extremely pleased with Farfetch’s strong first quarter where we exceeded our own expectations for GMV growth, while also achieving improved unit economics, operating leverage and adjusted EBITDA as compared to the prior year period. In light of the continuation of this strong momentum against a more favorable consumer backdrop, we are even more optimistic about our growth expectations for the year, and the value in continuing to invest behind our long-term growth opportunities as we continue to focus on delivering our first full year of adjusted EBITDA profitability 2021.”

GUIDANCE:

For Full Year 2021:

• Digital Platform GMV of $3.725 billion to $3.865 billion, representing growth of 35% to 40% year-over-year
• Adjusted EBITDA margin of 1% to 2%

For Second Quarter 2021:

• Digital Platform GMV of $910 million to $945 million, representing growth of 40% to 45% year-over-year
• Brand Platform GMV of $50 million to $60 million
• Adjusted EBITDA of $(23) million to $(25) million

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

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