Farfetch losses deepen in third quarter but Neves says “it’s on steady path to profitability”
Farfetch had red numbers of 85.4 million dollars, compared to losses of 77.2 million dollars in the same period of 2018 but CEO states the company is in path to profitability.
Farfetch on the path to profitability. The ecommerce platform, that went public in 2018, has stated that despite losses having deppened in the third quarter, the company is “on a steady path to profitability.” “I believe this will be the case independently of how long the promotional environment will last,” said José Neves, founder and chief executive officer of the company in a conference call last Thursday.
Farfetch had red numbers of 85.4 million dollars between June and September, compared to losses of 77.2 million dollars in the same period of 2018, down 28%. Elliot Jordan, chief financial officer of the company, stated that the losses increased due to the acquisition of New Guards Group, owner of brands like Off-White, Palm Angels or Marcelo Burlón, last summer for 675 million dollars.
The ecommerce platform has ended the period between June and September with sales of 255.4 million dollars, compared to 112.7 million dollars up 45.1%, year-on-year. Gross merchandising value (GMV) o the company stood at 492 million dollars, up 59%, while the number of users was 1.9 million of people.
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