Luxury Electricity Supplier Farfetch Accelerated Blood Loss Doubled In The First Quarter

After Wednesday's launch, the London luxury electric business Farfetch Ltd. (NYSE:FTCH), which just launched IPO in September last year, issued a quarterly loss of further expansion. Its share price fell by more than 6%, almost eliminating the increase of over 7% on Wednesday.

Up to the end of March, the Farfetch post tax deficit expanded to $109 million 300 thousand, double the loss of 50 million 727 thousand US dollars in the same period last year, exacerbated by 115.4%, and EPS declined from $-0.20 to US $-0.36.

Adj EPS -0.22 dollars, far below FactSet's expected -0.14 dollars.

Group founder and CEO Jos e Neves continues to advocate revenue growth and business expansion in the earnings report, including the $250 million deal for sports shoes retailer Stadium Goods during the period, as well as the merger of major shareholder JD.com Inc. (NASDAQ:JD) Jingdong's independent luxury electronics business Ping Tai Toplife.

The chief financial officer, Elliot Jordan, repeated the Jos e Neves argument, indicating that the company's growth rate was higher than that of the overall industry. After adjustment, EBITDA met expectations.

In the first quarter, group adj EBITDA increased from $23 million 657 thousand to US $30 million 236 thousand, while adj EBITDA profit margin improved by 220 basis points, from -22.9% to -20.7%, but the ring's 8.6% quarter deterioration compared with the fourth quarter.

In the first quarter, the gross profit margin of the group dropped by 345 basis points, from 52.15% to 48.70%, of which the gross profit margin of the Farfetch platform was 47.7%, down 108 basis points from 48.8% in the first quarter of 2018.

Mainly due to the increase in sales costs from $64 million 444 thousand to $90 million 773 thousand, the increase was 40.9% during the period.

Farfetch GMV grew by 43.2% in the first quarter, from $292 million 700 thousand to $419 million 300 thousand.

Among them, the platform business GMV grew by 43.7%, from $288 million 700 thousand to $414 million 700 thousand, and the fixed exchange rate increased by 50%.

GMV growth is mainly driven by user growth, with the growth rate of 64.3% to 170 in the first quarter, but the Farfetch platform price dropped by 7.1% to 601 US dollars, compared with 647.1 US dollars in the same period in 2018, and the newly acquired Stadium Goods customer price is 299.7 US dollars.

During the reporting period, the group's revenue increased by 38.6% to 174 million 100 thousand dollars, more than FactSet's expected $171 million 100 thousand, compared to $125 million 600 thousand in the same period in 2018, and the core platform service revenue increased by 43.2% to 141 million 800 thousand US dollars in the first quarter. The revenue of platform performance services increased 22.9% to 27 million 690 thousand dollars, and the real store revenue increased from 4 million 21 thousand US dollars to 4 million 536 thousand dollars, an increase of 12.8%.

After adjustment, the group earned $146 million 400 thousand in the first quarter, an increase of 42% compared with the US $103 million 100 thousand in the first quarter of 2018.

For the current fiscal year, Farfetch expects platform GMV growth of 41%, adj EBITDA profit margin -17 --16%, the two quarter platform GMV growth is expected to be 40 - 42%, adj EBITDA profit margin is expected -21 --19%.

As of Wednesday's closing, Farfetch Ltd. (NYSE:FTCH) shares were priced at $25.33, a record increase of 43.03% this year, which significantly outperformed the 13.73% increase in the S & P 500 index, a 26.65% increase compared with the 20 US dollar IPO price, but fell more than 20% over the historical high of $32.40 in the second trading days.

Author: Flower broken