Farfetch Limited, the leading global digital luxury fashion platform for the luxury fashion industry, reported its financial results for the fourth quarter and full year ended December 31, 2018.
Regardless of running on loss, the mega IPO (Initial public offering) said the online fashion retailer generated a record gross merchandise value (GMV) of US $ 1.4 billion in 2018 (up 56 percent from 2017) and US $ 466 million in the fourth quarter alone (up 51 percent).
The figures are beyond the retailer’s expectations itself as it continues to capture market share with the full-year growth rate being double that of the overall online industry.
Download Perfect Sourcing News App for Latest Business of Fashion News.
“By all measures, 2018 was a blockbuster year for Farfetch,” said Founder and CEO José Neves.
The CFO (Chief Financial Officer), Elliot Jordan, Farfetch shared his excitement about the record breaking GMV performance saying, “Our increasing scale has enabled us to leverage our efficiencies and lean into our customer proposition with new initiatives such as our Access loyalty program, to boost the lifetime value of our customers and enhance long-term shareholder value.”
Reportedly, the luxury industry is expected to grow to reach an estimated figure of US $ 500 billion over the next 10 years, and online sales will potentially grow to represent an incremental US $ 100 billion opportunity. Jordan said, “Farfetch is uniquely positioned to capture the lion’s share of this opportunity.”
In another development, Farfetch announced a major luxury e-tail partnership with JD.com, Chinese e-commerce company, and another with Harrods earlier this week.