Farfetch Announces Third Quarter 2020 Results
-
Q3 2020 Gross Merchandise Value and Digital Platform GMV growth rates accelerate – up 62% and 60% year-over-year, respectively, to record highs of
$798 million and$674 million , respectively -
Q3 2020 Revenue increases 71% year-over-year to
$438 million - Q3 2020 Gross Profit and Digital Platform Order Contribution up 82% and 98% year-over-year, respectively
- Gross Profit Margin of 48% and Digital Platform Order Contribution Margin of 37%
-
Q3 2020 Loss After Tax of
$537 million -
Q3 2020 Adjusted EBITDA improved to
$(10) million from$(36) million in Q3 2019 -
Announced global partnership with
Alibaba and Richemont to accelerate the digitization of luxury industry; strategic partners to invest total$1.15 billion in and new Farfetch China joint ventureFarfetch Limited
“What we are seeing is the acceleration of the secular trend of online adoption in luxury – an industry that is still very underpenetrated. The capabilities developed across the Farfetch platform over the past 13 years in anticipation of the eventual digitization of the luxury industry uniquely position Farfetch to capture this opportunity today. And our recently announced partnership with
“The strong underlying financial profile of Farfetch and recent investments by our new strategic partners who form part of Luxury New Retail initiative means we are well placed to support the global luxury industry in navigating the continued growth in online over the coming years.”
Consolidated Financial Summary and Key Operating Metrics (in thousands, except per share data, Average Order Value, or otherwise stated):
|
|
Three months ended |
|
|||||
|
|
2019 |
|
|
2020 |
|
||
|
|
|
|
|
|
|
|
|
Gross Merchandise Value (“GMV”) |
|
$ |
492,014 |
|
|
$ |
797,840 |
|
Revenue |
|
|
255,481 |
|
|
|
437,700 |
|
Adjusted Revenue |
|
|
228,227 |
|
|
|
386,778 |
|
Gross profit |
|
|
115,139 |
|
|
|
209,029 |
|
Gross profit margin |
|
45.1% |
|
|
47.8% |
|
||
Loss after tax |
|
$ |
(90,484 |
) |
|
$ |
(536,960 |
) |
Adjusted EBITDA |
|
|
(35,638 |
) |
|
|
(10,314 |
) |
Adjusted EBITDA Margin |
|
(15.6)% |
|
|
(2.7)% |
|
||
Earnings per share (“EPS”) |
|
$ |
(0.30 |
) |
|
$ |
(1.58 |
) |
Adjusted EPS |
|
|
(0.20 |
) |
|
|
(0.17 |
) |
Digital Platform: |
|
|
|
|
|
|
|
|
Digital Platform GMV |
|
$ |
420,266 |
|
|
$ |
674,097 |
|
Digital Platform Services Revenue |
|
|
156,479 |
|
|
|
263,035 |
|
Digital Platform Gross Profit |
|
|
83,294 |
|
|
|
143,318 |
|
Digital Platform Gross Profit Margin |
|
53.2% |
|
|
54.5% |
|
||
Digital Platform Order Contribution |
|
$ |
48,973 |
|
|
$ |
97,133 |
|
Digital Platform Order Contribution Margin |
|
31.3% |
|
|
36.9% |
|
||
Active Consumers |
|
|
1,889 |
|
|
|
2,742 |
|
Average Order Value (“AOV”) - Marketplace |
|
$ |
582 |
|
|
$ |
574 |
|
AOV - Stadium Goods |
|
|
327 |
|
|
|
340 |
|
Brand Platform: |
|
|
|
|
|
|
|
|
Brand Platform GMV |
|
$ |
62,671 |
|
|
$ |
112,327 |
|
Brand Platform Revenue |
|
|
62,671 |
|
|
|
112,327 |
|
Brand Platform Gross Profit |
|
|
27,464 |
|
|
|
58,738 |
|
Brand Platform Gross Profit Margin |
|
43.8% |
|
|
52.3% |
|
See “Notes and Disclosures” on page 19 for further explanations. See “Non-IFRS and Other Financial and Operating Metrics” on page 19 for reconciliations of non-IFRS measures to IFRS measures. As we acquired New Guards in
Recent Business Highlights
COVID-19
- Maintained continuity of operations with health and wellbeing of Farfetch employees, partners and customers continuing to be our top priority
- Collaborated with boutique and brand partners to drive continued growth of their digital sales via the Marketplace; Autumn-Winter 2020 supply reached previous year levels despite initial delays at the beginning of the quarter
- Maintained and expanded our relationships with logistics partners, preserving continuity of fulfilment and delivery operations, with no material disruptions to lead times or customer service levels during third quarter 2020
- Following the heightened restrictions recently announced by European governments, we have closed our retail stores in affected locations and will continue to comply as these measures evolve
Luxury New Retail
-
Announced a global partnership with
Alibaba and Richemont to accelerate the digitization of the luxury industryAlibaba to launch Farfetch luxury shopping channels onTmall Luxury Pavilion and Luxury Soho-
New
China joint venture to be formed to operate Farfetch marketplace inChina ; to be 75% owned by Farfetch, with remaining 25% owned equally byAlibaba and Richemont -
Farfetch and
Alibaba to leverage their platforms and augmented retail technologies to pursue Luxury New Retail initiative to accelerate the digitization of the global luxury industry -
Farfetch and
Alibaba form Luxury New Retail steering group; to be joined by Richemont Chairman,Johann Rupert , andArtemis Chairman ,François-Henri Pinault Alibaba , Richemont and Artemis to invest inFarfetch Limited and new Farfetch China joint venture a total of$1.15 billion
Digital Platform
-
Re-branded
Farfetch.com in conjunction with global ‘Open Doors to a World of Fashion’ brand campaign inSeptember 2020 , designed to build brand awareness and to continue capturing market share of the online luxury fashion industry
-
Accelerated GMV growth to 60% in third quarter 2020 driven by acceleration across all three geographic regions – the
Americas , EMEA and APAC, including each of our top 5 countries, which grew faster than during second quarter 2020 - Third-party transactions generated 83% of Digital Platform GMV at a take rate of 30.4% in third quarter 2020
- AOV recovered to a (1)% year-over-year change from an (18)% year-over-year decline reported last quarter driven by increases in sales of full-priced and higher-priced items, despite continued shift into lower-price categories
- Digital Platform Order Contribution Margin increased to 37% year-over-year, driven by a significant decrease in funded promotions and efficiencies in demand generation spending
-
Continued high levels of customer engagement, with an increase in Active Consumers of 45% year-over-year; app installs increased over 70% year-over-year, increasingly becoming a preferred channel for consumers
- Continued to build membership in our loyalty program to 2.5 million enrolled ACCESS members, and enhanced features to increase awareness of program benefits
-
Expanded offering to Marketplace consumers with signings of new e-concession partners Moncler, Dolce & Gabbana,
Ralph Lauren and watch maker RADO, our first e-concession from the Swatch Group, among other labels; also added new supply points from existing brand partners -
Added new features to enhance customer experience
-
Launched new iOS and Android app in
China , providing a more localized experience -
Initiated rollout of improved delivery features in select markets
- Expanded shipping capabilities to enable multi-leg logistics, which incorporate services from multiple providers and increase flexibility of our fulfilment operations
-
Piloted new customer communication solution in
Germany and theMiddle East with ParcelLab aimed at providing customers increased transparency in their shopping experience, from check-out to delivery, including returns
- New virtual sneaker try-on available on the Farfetch app, allowing customers to simulate the experience of trying-on their new favorite sneakers
-
Launched new iOS and Android app in
-
Farfetch Platform Solutions re-platformed e-commerce sites for Palm Angels, Marcelo Burlon County of
Milan and Ambush -
Celebrated the 50th anniversary of Browns with a combination of online and offline activities, including over 40 exclusive capsule collections in collaboration with household names such as Givenchy,
Balmain , Fendi, Loewe and Off-White, among others -
Opened second store for Stadium Goods in
Chicago , also adding a new market center for consignment intake and operations
New Guards
-
For the sixth consecutive quarter, GMV from New Guards brands, in aggregate, exceeded GMV for any other single brand on the
Farfetch Marketplace in third quarter 2020 -
Generated third quarter 2020 Brand Platform Revenue of
$112 million , a year-over-year increase of 79%, reflecting the timing of New Guards’ acquisition in Q3 2019, as well as strong demand for New Guards’ brands -
New Guards’ brand portfolio continued to create culturally relevant collections
- Off-White released second homeware collection, and new sneaker collaborations – Off-White x Nike rubber dunk in “Green Strike” and Off-White x Air Jordan 5 "Sail"
- Palm Angels continued to gain traction and became one of the top 10 brands on the
Farfetch Marketplace , based on GMV
Third Quarter 2020 Results Summary
Gross Merchandise Value (in thousands):
|
|
Three months ended |
|
|||||
|
|
2019 |
|
|
2020 |
|
||
Digital Platform GMV |
|
$ |
420,266 |
|
|
$ |
674,097 |
|
Brand Platform GMV |
|
|
62,671 |
|
|
|
112,327 |
|
In-Store GMV |
|
|
9,077 |
|
|
|
11,416 |
|
GMV |
|
$ |
492,014 |
|
|
$ |
797,840 |
|
Gross Merchandise Value (“GMV”) increased by
The increase in GMV primarily reflects the growth in Digital Platform GMV and
Revenue (in thousands):
|
|
Three months ended |
|
|||||
|
|
2019 |
|
|
2020 |
|
||
Digital Platform Services third-party revenue |
|
$ |
106,983 |
|
|
$ |
157,174 |
|
Digital Platform Services first-party revenue |
|
|
49,496 |
|
|
|
105,861 |
|
Digital Platform Services Revenue |
|
|
156,479 |
|
|
|
263,035 |
|
Digital Platform Fulfilment Revenue |
|
|
27,254 |
|
|
|
50,922 |
|
Brand Platform Revenue |
|
|
62,671 |
|
|
|
112,327 |
|
In-Store Revenue |
|
|
9,077 |
|
|
|
11,416 |
|
Revenue |
|
$ |
255,481 |
|
|
$ |
437,700 |
|
Revenue increased by
The increase in Digital Platform Services Revenue of 68.1% was driven by 60.4% overall growth in Digital Platform GMV. Digital Platform Services first-party GMV, which is composed of our sales of owned-inventory including First-Party Original, is included in Digital Platform Services Revenue at 100% of the GMV. Digital Platform Services first-party GMV increased 113.9% year-over-year to
Digital Platform Fulfilment Revenue represents the pass-through of delivery and duties charges incurred by our global logistics solutions, net of any Farfetch-funded consumer promotions and incentives. Whilst Digital Platform Fulfilment Revenue would be expected to grow in line with the cost of delivery and duties, which increase as Digital Platform GMV and order volumes grow, variations in the level of Farfetch-funded promotions and incentives will impact Digital Platform Fulfilment Revenue. In third quarter 2020, Digital Platform Fulfilment Revenue increased 86.8% year-over-year, a higher rate as compared to Digital Platform Services Revenue growth, due to a reduced number of Farfetch-funded promotions year-over-year.
Cost of Revenue (in thousands):
|
|
Three months ended |
|
|||||
|
|
2019 |
|
|
2020 |
|
||
Digital Platform Services third-party cost of revenue |
|
$ |
36,314 |
|
|
$ |
52,691 |
|
Digital Platform Services first-party cost of revenue |
|
|
36,871 |
|
|
|
67,026 |
|
Digital Platform Services cost of revenue |
|
|
73,185 |
|
|
|
119,717 |
|
Digital Platform Fulfilment cost of revenue |
|
|
27,254 |
|
|
|
50,922 |
|
Brand Platform cost of revenue |
|
|
35,207 |
|
|
|
53,589 |
|
In-Store cost of goods sold |
|
|
4,696 |
|
|
|
4,443 |
|
Cost of revenue |
|
$ |
140,342 |
|
|
$ |
228,671 |
|
Cost of revenue increased by
We are reliant on third-parties to provide shipping and delivery services, and potential changes in their operations due to the ongoing impacts of COVID-19 could result in future impacts to our service levels or cost of revenue, however there were no such material adverse impacts to our service levels or cost of revenue in third quarter 2020.
Gross profit (in thousands):
|
|
Three months ended |
|
|||||
|
|
2019 |
|
|
2020 |
|
||
Digital Platform third-party gross profit |
|
$ |
70,669 |
|
|
$ |
104,483 |
|
Digital Platform first-party gross profit |
|
|
12,625 |
|
|
|
38,835 |
|
Digital Platform Gross Profit |
|
|
83,294 |
|
|
|
143,318 |
|
Brand Platform Gross Profit |
|
|
27,464 |
|
|
|
58,738 |
|
In-Store Gross Profit |
|
|
4,381 |
|
|
|
6,973 |
|
Gross profit |
|
$ |
115,139 |
|
|
$ |
209,029 |
|
Gross profit increased by
Selling, general and administrative expenses by type (in thousands):
|
|
Three months ended |
|
|||||
|
|
2019 |
|
|
2020 |
|
||
Demand generation expense |
|
$ |
34,321 |
|
|
$ |
46,185 |
|
Technology expense |
|
|
22,322 |
|
|
|
29,809 |
|
Share based payments |
|
|
31,760 |
|
|
|
81,840 |
|
Depreciation and amortization |
|
|
35,097 |
|
|
|
54,007 |
|
General and administrative |
|
|
94,134 |
|
|
|
143,349 |
|
Other items |
|
|
10,061 |
|
|
|
860 |
|
Selling, general and administrative expense |
|
$ |
227,695 |
|
|
$ |
356,050 |
|
Third quarter 2020 demand generation expense increased 34.6% year-over-year to
Technology expense, which primarily relates to development and operations of our platform features and services, and also includes software, hosting and infrastructure expenses, increased by
Share based payments increased by
Depreciation and amortization expense increased by
General and administrative expense increased by
Other items of
Gains/(losses) on items held at fair value and remeasurements (in thousands):
|
|
Three months ended |
|
|||||
|
|
2019 |
|
|
2020 |
|
||
Remeasurement gains/(losses) on put and call option liabilities |
|
$ |
53,812 |
|
|
$ |
(77,800 |
) |
Fair value losses on embedded derivative liabilities |
|
|
- |
|
|
|
(295,279 |
) |
Change in fair value of acquisition related consideration |
|
|
(21,526 |
) |
|
|
- |
|
Gains/(losses) on items held at fair value and remeasurements |
|
$ |
32,286 |
|
|
$ |
(373,079 |
) |
In third quarter 2020, we recorded a
Adjusted EBITDA and Adjusted EBITDA Margin
Adjusted EBITDA improved by
Loss After Tax
Loss after tax increased by
Liquidity
At
Events After the Reporting Period
As part of the
In conjunction with the above strategic developments, Farfetch has agreed to close its consumer-facing channels on JD.com, Inc.’s (“JD.com”) platform. The Level 1 access button, acquired in 2019 as part of the acquisition of Toplife, provides direct access to Farfetch’s direct consumer-facing channels on JD.com. As at
Outlook
The following forward-looking statements reflect Farfetch’s expectations as of
For the Fourth Quarter 2020:
-
Digital Platform GMV of
$880 million to$910 million , representing growth of 40% to 45% year-over-year -
Brand Platform GMV of
$85 million to$90 million - Positive Adjusted EBITDA
Uncertainties resulting from the spread COVID-19 and the evolving nature of the situation could have material impacts on our future performance and projections. Factors involving COVID-19 that could potentially impact our future performance include, among others:
- disruptions to our operations, fulfilment network, shipments
- reduced or delayed supply from potential factors, including reduced inventory from brands and retailers, as well as additional shutdowns
- weakened consumer sentiment and discretionary income potentially arising from a prolonged shutdown and declining macro-economic conditions
Conference Call Information
Farfetch will host a conference call today,
Unaudited interim condensed consolidated statements of operations |
|
|
|
|
|
|||
for the three months ended |
|
|
|
|
|
|||
(in $ thousands, except share and per share data) |
|
|
|
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
2019 |
|
|
2020 |
|
||
Revenue |
|
|
255,481 |
|
|
|
437,700 |
|
|
|
|
|
|
|
|
|
|
Cost of revenue |
|
|
(140,342 |
) |
|
|
(228,671 |
) |
Gross profit |
|
|
115,139 |
|
|
|
209,029 |
|
|
|
|
|
|
|
|
|
|
Selling, general and administrative expenses |
|
|
(227,695 |
) |
|
|
(356,050 |
) |
Operating loss |
|
|
(112,556 |
) |
|
|
(147,021 |
) |
|
|
|
|
|
|
|
|
|
Gains/(losses) on items held at fair value and remeasurements |
|
|
32,286 |
|
|
|
(373,079 |
) |
Share of results of associates |
|
|
371 |
|
|
|
385 |
|
Finance income |
|
|
1,672 |
|
|
|
1,033 |
|
Finance costs |
|
|
(12,361 |
) |
|
|
(15,396 |
) |
Loss before tax |
|
|
(90,588 |
) |
|
|
(534,078 |
) |
|
|
|
|
|
|
|
|
|
Income tax benefit/(expense) |
|
|
104 |
|
|
|
(2,882 |
) |
Loss after tax |
|
|
(90,484 |
) |
|
|
(536,960 |
) |
|
|
|
|
|
|
|
|
|
(Loss)/profit after tax attributable to: |
|
|
|
|
|
|
|
|
Equity holders of the parent |
|
|
(95,277 |
) |
|
|
(544,320 |
) |
Non-controlling interests |
|
|
4,793 |
|
|
|
7,360 |
|
|
|
|
(90,484 |
) |
|
|
(536,960 |
) |
|
|
|
|
|
|
|
|
|
Loss per share attributable to equity holders of the parent |
|
|
|
|
|
|
|
|
Basic and diluted |
|
|
(0.30 |
) |
|
|
(1.58 |
) |
|
|
|
|
|
|
|
|
|
Weighted-average ordinary shares outstanding |
|
|
|
|
|
|
|
|
Basic and diluted |
|
|
322,226,776 |
|
|
|
344,185,603 |
|
Unaudited interim condensed consolidated statements of comprehensive loss |
|
|
|
|
|
|||
for the three months ended |
|
|
|
|
|
|||
(in $ thousands) |
|
|
|
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
2019 |
|
|
2020 |
|
||
Loss after tax |
|
|
(90,484 |
) |
|
|
(536,960 |
) |
|
|
|
|
|
|
|
|
|
Other comprehensive (loss)/income: |
|
|
|
|
|
|
|
|
Items that may be subsequently reclassified to the consolidated statement of operations (net of tax): |
|
|
|
|
|
|
|
|
Exchange differences (loss)/gain on translation of foreign operations |
|
|
(3,286 |
) |
|
|
6,668 |
|
(Loss)/gain on cash flow hedges |
|
|
(3,082 |
) |
|
|
4,839 |
|
Items that will not be subsequently reclassified to the consolidated statement of operations (net of tax): |
|
|
|
|
|
|
|
|
Impairment loss on investments |
|
|
(100 |
) |
|
|
- |
|
Remeasurement loss on severance plan |
|
|
(31 |
) |
|
|
- |
|
Other comprehensive (loss)/income for the period, net of tax |
|
|
(6,499 |
) |
|
|
11,507 |
|
Total comprehensive loss for the period, net of tax |
|
|
(96,983 |
) |
|
|
(525,453 |
) |
|
|
|
|
|
|
|
|
|
Total comprehensive (loss)/income attributable to: |
|
|
|
|
|
|
|
|
Equity holders of the parent |
|
|
(101,776 |
) |
|
|
(532,813 |
) |
Non-controlling interests |
|
|
4,793 |
|
|
|
7,360 |
|
|
|
|
(96,983 |
) |
|
|
(525,453 |
) |
Unaudited interim condensed consolidated statements of operations |
|
|
|
|
|
|||
for the nine months ended |
|
|
|
|
|
|||
(in $ thousands, except share and per share data) |
|
|
|
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
2019 |
|
|
2020 |
|
||
Revenue |
|
|
638,805 |
|
|
|
1,133,817 |
|
|
|
|
|
|
|
|
|
|
Cost of revenue |
|
|
(355,095 |
) |
|
|
(612,037 |
) |
Gross profit |
|
|
283,710 |
|
|
|
521,780 |
|
|
|
|
|
|
|
|
|
|
Selling, general and administrative expenses |
|
|
(577,660 |
) |
|
|
(914,378 |
) |
Impairment losses on tangible assets |
|
|
- |
|
|
|
(2,292 |
) |
Operating loss |
|
|
(293,950 |
) |
|
|
(394,890 |
) |
|
|
|
|
|
|
|
|
|
Gains/(losses) on items held at fair value and remeasurements |
|
|
32,286 |
|
|
|
(586,267 |
) |
Share of results of associates |
|
|
404 |
|
|
|
(140 |
) |
Finance income |
|
|
15,131 |
|
|
|
2,734 |
|
Finance costs |
|
|
(16,163 |
) |
|
|
(72,203 |
) |
Loss before tax |
|
|
(262,292 |
) |
|
|
(1,050,766 |
) |
|
|
|
|
|
|
|
|
|
Income tax expense |
|
|
(1,270 |
) |
|
|
(1,270 |
) |
Loss after tax |
|
|
(263,562 |
) |
|
|
(1,052,036 |
) |
|
|
|
|
|
|
|
|
|
(Loss)/profit after tax attributable to: |
|
|
|
|
|
|
|
|
Equity holders of the parent |
|
|
(268,390 |
) |
|
|
(1,066,026 |
) |
Non-controlling interests |
|
|
4,828 |
|
|
|
13,990 |
|
|
|
|
(263,562 |
) |
|
|
(1,052,036 |
) |
|
|
|
|
|
|
|
|
|
Loss per share attributable to owners of the company |
|
|
|
|
|
|
|
|
Basic and diluted |
|
|
(0.86 |
) |
|
|
(3.12 |
) |
|
|
|
|
|
|
|
|
|
Weighted-average ordinary shares outstanding |
|
|
|
|
|
|
|
|
Basic and diluted |
|
|
311,858,726 |
|
|
|
341,896,665 |
|
Unaudited interim condensed consolidated statements of comprehensive loss |
|
|
|
|
|
|||
for the nine months ended |
|
|
|
|
|
|||
(in $ thousands) |
|
|
|
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
2019 |
|
|
2020 |
|
||
Loss after tax |
|
|
(263,562 |
) |
|
|
(1,052,036 |
) |
Other comprehensive income/(loss): |
|
|
|
|
|
|
|
|
Items that may be subsequently reclassified to the consolidated statement of operations (net of tax): |
|
|
|
|
|
|
|
|
Exchange differences gain on translation of foreign operations |
|
|
18,507 |
|
|
|
22,264 |
|
Loss on cash flow hedges |
|
|
(8,162 |
) |
|
|
(3,643 |
) |
Items that will not be subsequently reclassified to the consolidated statement of operations (net of tax): |
|
|
|
|
|
|
|
|
Impairment loss on investments |
|
|
(100 |
) |
|
|
- |
|
Remeasurement loss on severance plan |
|
|
(31 |
) |
|
|
(3 |
) |
Other comprehensive income for the period, net of tax |
|
|
10,214 |
|
|
|
18,618 |
|
Total comprehensive loss for the period, net of tax |
|
|
(253,348 |
) |
|
|
(1,033,418 |
) |
|
|
|
|
|
|
|
|
|
Total comprehensive (loss)/income attributable to: |
|
|
|
|
|
|
|
|
Equity holders of the parent |
|
|
(258,176 |
) |
|
|
(1,047,408 |
) |
Non-controlling interests |
|
|
4,828 |
|
|
|
13,990 |
|
|
|
|
(253,348 |
) |
|
|
(1,033,418 |
) |
|
|
|
|
|
|
|
|
|
Unaudited interim condensed consolidated statements of financial position |
|
|
|
|
|
|||
(in $ thousands) |
|
|
|
|
|
|||
|
|
2019 |
|
|
2020 |
|
||
Non-current assets |
|
|
|
|
|
|
|
|
Other receivables |
|
|
12,388 |
|
|
|
14,041 |
|
Deferred tax assets |
|
|
5,324 |
|
|
|
5,923 |
|
Intangible assets, net |
|
|
1,362,967 |
|
|
|
1,334,397 |
|
Property, plant and equipment, net |
|
|
67,999 |
|
|
|
79,338 |
|
Right-of-use assets |
|
|
115,176 |
|
|
|
140,803 |
|
Investments |
|
|
16,229 |
|
|
|
8,344 |
|
Investments in associates |
|
|
2,466 |
|
|
|
2,253 |
|
Total non-current assets |
|
|
1,582,549 |
|
|
|
1,585,099 |
|
Current assets |
|
|
|
|
|
|
|
|
Inventories |
|
|
128,107 |
|
|
|
128,071 |
|
Trade and other receivables |
|
|
189,897 |
|
|
|
190,421 |
|
Current tax assets |
|
|
1,873 |
|
|
|
42,577 |
|
Derivative financial assets |
|
|
3,024 |
|
|
|
3,242 |
|
Cash and cash equivalents |
|
|
322,429 |
|
|
|
756,713 |
|
Total current assets |
|
|
645,330 |
|
|
|
1,121,024 |
|
Total assets |
|
|
2,227,879 |
|
|
|
2,706,123 |
|
|
|
|
|
|
|
|
|
|
Liabilities and equity |
|
|
|
|
|
|
|
|
Non-current liabilities |
|
|
|
|
|
|
|
|
Provisions |
|
|
23,704 |
|
|
|
55,252 |
|
Deferred tax liabilities |
|
|
219,789 |
|
|
|
200,156 |
|
Lease liabilities |
|
|
100,833 |
|
|
|
129,833 |
|
Employee benefit obligations |
|
|
16,455 |
|
|
|
19,204 |
|
Derivative financial liabilities |
|
|
- |
|
|
|
659,576 |
|
Borrowings |
|
|
- |
|
|
|
469,430 |
|
Put and call option liabilities |
|
|
61,268 |
|
|
|
182,249 |
|
Total non-current liabilities |
|
|
422,049 |
|
|
|
1,715,700 |
|
Current liabilities |
|
|
|
|
|
|
|
|
Trade and other payables |
|
|
413,696 |
|
|
|
459,036 |
|
Provisions |
|
|
- |
|
|
|
12,597 |
|
Current tax liability |
|
|
28,289 |
|
|
|
35,735 |
|
Lease liabilities |
|
|
18,485 |
|
|
|
21,783 |
|
Derivative financial liabilities |
|
|
5,601 |
|
|
|
10,825 |
|
Put and call option liabilities |
|
|
1,118 |
|
|
|
1,125 |
|
Other financial liabilities |
|
|
809 |
|
|
|
1,374 |
|
Total current liabilities |
|
|
467,998 |
|
|
|
542,475 |
|
Total liabilities |
|
|
890,047 |
|
|
|
2,258,175 |
|
Equity |
|
|
|
|
|
|
|
|
Share capital |
|
|
13,584 |
|
|
|
13,842 |
|
Share premium |
|
|
878,007 |
|
|
|
890,116 |
|
Merger reserve |
|
|
783,529 |
|
|
|
783,529 |
|
Foreign exchange reserve |
|
|
(30,842 |
) |
|
|
(8,578 |
) |
Other reserves |
|
|
349,463 |
|
|
|
415,850 |
|
Accumulated losses |
|
|
(826,135 |
) |
|
|
(1,810,512 |
) |
Equity attributable to the parent |
|
|
1,167,606 |
|
|
|
284,247 |
|
Non-controlling interests |
|
|
170,226 |
|
|
|
163,701 |
|
Total equity |
|
|
1,337,832 |
|
|
|
447,948 |
|
Total equity and liabilities |
|
|
2,227,879 |
|
|
|
2,706,123 |
|
Unaudited interim condensed consolidated statements of cash flows |
|
|
|
|
|
|||
for the nine months ended |
|
|
|
|
|
|
|
|
(in $ thousands) |
|
|
|
|
|
|||
|
|
2019 |
|
|
2020 |
|
||
Cash flows from operating activities |
|
|
|
|
|
|
|
|
Operating loss |
|
|
(293,950 |
) |
|
|
(394,890 |
) |
Adjustments to reconcile operating loss to net cash outflow from operating activities: |
|
|
|
|
|
|
|
|
Depreciation |
|
|
19,533 |
|
|
|
28,113 |
|
Amortization |
|
|
43,993 |
|
|
|
128,975 |
|
Non-cash employee benefits expense |
|
|
75,525 |
|
|
|
124,644 |
|
Net loss on sale of non-current assets |
|
|
5 |
|
|
|
- |
|
Impairment losses on tangible assets |
|
|
- |
|
|
|
2,292 |
|
Impairment of investments |
|
|
5,000 |
|
|
|
169 |
|
Net exchange differences |
|
|
(1,966 |
) |
|
|
- |
|
Change in working capital |
|
|
|
|
|
|
|
|
Increase in receivables |
|
|
(2,124 |
) |
|
|
(2,168 |
) |
(Increase)/decrease in inventories |
|
|
(6,746 |
) |
|
|
961 |
|
Increase in payables |
|
|
5,824 |
|
|
|
41,449 |
|
Change in other assets and liabilities |
|
|
|
|
|
|
|
|
Increase in non-current receivables |
|
|
(2,558 |
) |
|
|
(1,203 |
) |
Increase in other liabilities |
|
|
16,936 |
|
|
|
15,749 |
|
Increase in provisions |
|
|
- |
|
|
|
42,616 |
|
Decrease in derivative financial instruments |
|
|
(5,011 |
) |
|
|
(13,549 |
) |
Income taxes paid |
|
|
(1,947 |
) |
|
|
(57,790 |
) |
Net cash outflow from operating activities |
|
|
(147,486 |
) |
|
|
(84,632 |
) |
|
|
|
|
|
|
|
|
|
Cash flows from investing activities |
|
|
|
|
|
|
|
|
Acquisition of subsidiary, net of cash acquired |
|
|
(461,690 |
) |
|
|
(12,016 |
) |
Payments for property, plant and equipment |
|
|
(38,013 |
) |
|
|
(16,732 |
) |
Payments for intangible assets |
|
|
(58,497 |
) |
|
|
(65,525 |
) |
Payments for investments |
|
|
(18,733 |
) |
|
|
(2,872 |
) |
Interest received |
|
|
10,701 |
|
|
|
3,345 |
|
Dividends received from associate |
|
|
- |
|
|
|
58 |
|
Net cash outflow from investing activities |
|
|
(566,232 |
) |
|
|
(93,742 |
) |
|
|
|
|
|
|
|
|
|
Cash flows from financing activities |
|
|
|
|
|
|
|
|
Repayment of the principal elements of lease payments |
|
|
(13,597 |
) |
|
|
(12,695 |
) |
Interest paid and fees paid on loans |
|
|
(2,807 |
) |
|
|
(20,662 |
) |
Dividends paid to holders of non-controlling interests |
|
|
- |
|
|
|
(20,515 |
) |
Proceeds from issue of shares, net of issue costs |
|
|
8,249 |
|
|
|
27,687 |
|
Proceeds from borrowings, net of issue costs |
|
|
- |
|
|
|
641,861 |
|
Net cash (outflow)/inflow from financing activities |
|
|
(8,155 |
) |
|
|
615,676 |
|
|
|
|
|
|
|
|
|
|
Net (decrease)/increase in cash and cash equivalents |
|
|
(721,873 |
) |
|
|
437,302 |
|
Cash and cash equivalents at the beginning of the period |
|
|
1,044,786 |
|
|
|
322,429 |
|
Effects of exchange rate changes on cash and cash equivalents |
|
|
(4,538 |
) |
|
|
(3,018 |
) |
Cash and cash equivalents at end of period |
|
|
318,375 |
|
|
|
756,713 |
|
Unaudited interim condensed consolidated statements of changes in equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
(in $ thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share capital |
|
|
Share premium |
|
|
Merger reserve |
|
|
Foreign exchange reserve |
|
|
Other reserves |
|
|
Accumulated losses |
|
|
Equity attributable to the parent |
|
|
Non- controlling interests |
|
|
Total equity |
|
|
|||||||||
Balance at |
|
|
11,994 |
|
|
|
772,300 |
|
|
|
783,529 |
|
|
|
(23,509 |
) |
|
|
67,474 |
|
|
|
(483,357 |
) |
|
|
1,128,431 |
|
|
|
- |
|
|
|
1,128,431 |
|
|
Changes in equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Loss)/income after tax for the period |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(268,390 |
) |
|
|
(268,390 |
) |
|
|
4,828 |
|
|
|
(263,562 |
) |
|
Other comprehensive income/(loss) |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
18,507 |
|
|
|
(8,293 |
) |
|
|
- |
|
|
|
10,214 |
|
|
|
- |
|
|
|
10,214 |
|
|
Issue of share capital, net of transaction costs |
|
|
1,576 |
|
|
|
104,144 |
|
|
|
- |
|
|
|
- |
|
|
|
389,879 |
|
|
|
- |
|
|
|
495,599 |
|
|
|
- |
|
|
|
495,599 |
|
|
Share based payment – equity settled |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
51,364 |
|
|
|
45,743 |
|
|
|
97,107 |
|
|
|
- |
|
|
|
97,107 |
|
|
Share based payment – reverse vesting shares |
|
- |
|
|
- |
|
|
|
- |
|
|
- |
|
|
|
(92,425 |
) |
|
- |
|
|
|
(92,425 |
) |
|
|
- |
|
|
|
(92,425 |
) |
|
||||
Transaction with non- controlling interests |
|
- |
|
|
- |
|
|
|
- |
|
|
- |
|
|
|
(101,311 |
) |
|
- |
|
|
|
(101,311 |
) |
|
|
- |
|
|
|
(101,311 |
) |
|
||||
Non-controlling interest arising from a business combination |
|
- |
|
|
- |
|
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
|
- |
|
|
|
158,616 |
|
|
|
158,616 |
|
|
|||||
Non-controlling interest put option |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(4,322 |
) |
|
|
(4,322 |
) |
|
|
- |
|
|
|
(4,322 |
) |
|
Balance at |
|
|
13,570 |
|
|
|
876,444 |
|
|
|
783,529 |
|
|
|
(5,002 |
) |
|
|
306,688 |
|
|
|
(710,326 |
) |
|
|
1,264,903 |
|
|
|
163,444 |
|
|
|
1,428,347 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at |
|
|
13,584 |
|
|
|
878,007 |
|
|
|
783,529 |
|
|
|
(30,842 |
) |
|
|
349,463 |
|
|
|
(826,135 |
) |
|
|
1,167,606 |
|
|
|
170,226 |
|
|
|
1,337,832 |
|
|
Changes in equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Loss)/income after tax for the period |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
|
(1,066,026 |
) |
|
|
(1,066,026 |
) |
|
|
13,990 |
|
|
|
(1,052,036 |
) |
|
|||||
Other comprehensive income/(loss) |
|
- |
|
|
- |
|
|
- |
|
|
|
22,264 |
|
|
|
(3,646 |
) |
|
|
- |
|
|
|
18,618 |
|
|
|
- |
|
|
|
18,618 |
|
|
|||
Issue of share capital, net of transaction costs |
|
|
258 |
|
|
|
12,109 |
|
|
- |
|
|
- |
|
|
|
4,808 |
|
|
|
- |
|
|
|
17,175 |
|
|
|
- |
|
|
|
17,175 |
|
|
||
Share based payment – equity settled |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
|
45,655 |
|
|
|
81,649 |
|
|
|
127,304 |
|
|
|
- |
|
|
|
127,304 |
|
|
||||
Share based payment – reverse vesting shares |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
|
19,570 |
|
|
- |
|
|
|
19,570 |
|
|
|
- |
|
|
|
19,570 |
|
|
|||||
Dividends paid to non-controlling interests |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
|
- |
|
|
- |
|
|
|
- |
|
|
|
(20,515 |
) |
|
|
(20,515 |
) |
|
|||||
Balance at |
|
13,842 |
|
|
|
890,116 |
|
|
|
783,529 |
|
|
|
(8,578 |
) |
|
|
415,850 |
|
|
|
(1,810,512 |
) |
|
|
284,247 |
|
|
|
163,701 |
|
|
|
447,948 |
|
Supplemental Metrics 1 |
|
2018 |
|
|
2019 |
|
|
2020 |
|
|||||||||||||||||||||||
|
|
Fourth Quarter |
|
|
First Quarter |
|
|
Second Quarter |
|
|
Third Quarter |
|
|
Fourth Quarter |
|
|
First Quarter |
|
|
Second Quarter |
|
|
Third Quarter |
|
||||||||
|
|
(in thousands, except per share data or otherwise stated) |
|
|||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross Merchandise Value (“GMV”) |
|
$ |
466,490 |
|
|
$ |
419,273 |
|
|
$ |
488,475 |
|
|
$ |
492,014 |
|
|
$ |
739,937 |
|
|
$ |
610,874 |
|
|
$ |
721,310 |
|
|
$ |
797,840 |
|
Revenue |
|
|
195,533 |
|
|
|
174,064 |
|
|
|
209,260 |
|
|
|
255,481 |
|
|
|
382,232 |
|
|
|
331,437 |
|
|
|
364,680 |
|
|
|
437,700 |
|
Adjusted Revenue |
|
|
170,089 |
|
|
|
146,374 |
|
|
|
180,738 |
|
|
|
228,227 |
|
|
|
337,738 |
|
|
|
301,152 |
|
|
|
307,877 |
|
|
|
386,778 |
|
In-Store Revenue |
|
|
4,314 |
|
|
|
4,536 |
|
|
|
4,220 |
|
|
|
9,077 |
|
|
|
9,788 |
|
|
|
8,516 |
|
|
|
3,926 |
|
|
|
11,416 |
|
Gross profit |
|
|
94,197 |
|
|
|
83,291 |
|
|
|
85,280 |
|
|
|
115,139 |
|
|
|
176,136 |
|
|
|
153,376 |
|
|
|
159,375 |
|
|
|
209,029 |
|
Gross profit margin |
|
48.2% |
|
|
47.9% |
|
|
40.8% |
|
|
45.1% |
|
|
46.1% |
|
|
46.3% |
|
|
43.7% |
|
|
47.8% |
|
||||||||
Demand generation expense |
|
$ |
(33,934 |
) |
|
$ |
(31,423 |
) |
|
$ |
(34,444 |
) |
|
$ |
(34,321 |
) |
|
$ |
(51,162 |
) |
|
$ |
(37,966 |
) |
|
$ |
(47,378 |
) |
|
$ |
(46,185 |
) |
Technology expense |
|
|
(18,159 |
) |
|
|
(20,159 |
) |
|
|
(19,073 |
) |
|
|
(22,322 |
) |
|
|
(22,653 |
) |
|
|
(26,307 |
) |
|
|
(29,284 |
) |
|
|
(29,809 |
) |
Share based payments |
|
|
(2,821 |
) |
|
|
(38,714 |
) |
|
|
(45,710 |
) |
|
|
(31,760 |
) |
|
|
(42,238 |
) |
|
|
(26,760 |
) |
|
|
(61,915 |
) |
|
|
(81,840 |
) |
Depreciation and amortization |
|
|
(7,185 |
) |
|
|
(14,106 |
) |
|
|
(14,323 |
) |
|
|
(35,097 |
) |
|
|
(50,065 |
) |
|
|
(51,323 |
) |
|
|
(51,758 |
) |
|
|
(54,007 |
) |
General and administrative |
|
|
(56,679 |
) |
|
|
(61,945 |
) |
|
|
(69,339 |
) |
|
|
(94,134 |
) |
|
|
(120,247 |
) |
|
|
(111,422 |
) |
|
|
(107,888 |
) |
|
|
(143,349 |
) |
Other items |
|
|
- |
|
|
|
(2,493 |
) |
|
|
1,764 |
|
|
|
(10,061 |
) |
|
|
(5,584 |
) |
|
|
(5,025 |
) |
|
|
(1,302 |
) |
|
|
(860 |
) |
Impairment losses on tangible assets |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(2,292 |
) |
|
|
- |
|
|
|
- |
|
Gains / (losses) on items held at fair value and remeasurements |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
32,286 |
|
|
|
(10,565 |
) |
|
|
65,434 |
|
|
|
(278,622 |
) |
|
|
(373,079 |
) |
Loss after tax |
|
|
(9,912 |
) |
|
|
(77,686 |
) |
|
|
(95,392 |
) |
|
|
(90,484 |
) |
|
|
(110,126 |
) |
|
|
(79,177 |
) |
|
|
(435,899 |
) |
|
|
(536,960 |
) |
Adjusted EBITDA |
|
|
(14,575 |
) |
|
|
(30,236 |
) |
|
|
(37,576 |
) |
|
|
(35,638 |
) |
|
|
(17,926 |
) |
|
|
(22,319 |
) |
|
|
(25,175 |
) |
|
|
(10,314 |
) |
Adjusted EBITDA Margin |
|
(8.6)% |
|
|
(20.7)% |
|
|
(20.8)% |
|
|
(15.6)% |
|
|
(5.3)% |
|
|
(7.4)% |
|
|
(8.2)% |
|
|
(2.7)% |
|
||||||||
Earnings per share (“EPS”) |
|
$ |
(0.03 |
) |
|
$ |
(0.26 |
) |
|
$ |
(0.31 |
) |
|
$ |
(0.30 |
) |
|
$ |
(0.34 |
) |
|
$ |
(0.24 |
) |
|
$ |
(1.29 |
) |
|
$ |
(1.58 |
) |
Adjusted EPS |
|
|
(0.02 |
) |
|
|
(0.11 |
) |
|
|
(0.16 |
) |
|
|
(0.20 |
) |
|
|
(0.08 |
) |
|
|
(0.24 |
) |
|
|
(0.20 |
) |
|
|
(0.17 |
) |
Digital Platform: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Digital Platform GMV |
|
$ |
462,176 |
|
|
$ |
414,737 |
|
|
$ |
484,255 |
|
|
$ |
420,266 |
|
|
$ |
628,610 |
|
|
$ |
494,899 |
|
|
$ |
651,036 |
|
|
$ |
674,097 |
|
Digital Platform Services Revenue |
|
|
165,775 |
|
|
|
141,838 |
|
|
|
176,518 |
|
|
|
156,479 |
|
|
|
226,411 |
|
|
|
185,177 |
|
|
|
237,603 |
|
|
|
263,035 |
|
Digital Platform Fulfilment Revenue |
|
|
25,444 |
|
|
|
27,690 |
|
|
|
28,522 |
|
|
|
27,254 |
|
|
|
44,494 |
|
|
|
30,285 |
|
|
|
56,803 |
|
|
|
50,922 |
|
Digital Platform Gross Profit |
|
|
92,632 |
|
|
|
80,941 |
|
|
|
84,106 |
|
|
|
83,294 |
|
|
|
123,572 |
|
|
|
97,207 |
|
|
|
130,579 |
|
|
|
143,318 |
|
Digital Platform Gross Profit Margin |
|
55.9% |
|
|
57.1% |
|
|
47.6% |
|
|
53.2% |
|
|
54.6% |
|
|
52.5% |
|
|
55.0% |
|
|
54.5% |
|
||||||||
Digital Platform Order Contribution |
|
$ |
58,698 |
|
|
$ |
49,518 |
|
|
$ |
49,662 |
|
|
$ |
48,973 |
|
|
$ |
72,410 |
|
|
$ |
59,241 |
|
|
$ |
83,201 |
|
|
$ |
97,133 |
|
Digital Platform Order Contribution Margin |
|
35.4% |
|
|
34.9% |
|
|
28.1% |
|
|
31.3% |
|
|
32.0% |
|
|
32.0% |
|
|
35.0% |
|
|
36.9% |
|
||||||||
Active Consumers |
|
|
1,382 |
|
|
|
1,699 |
|
|
|
1,773 |
|
|
|
1,889 |
|
|
|
2,068 |
|
|
|
2,149 |
|
|
|
2,524 |
|
|
|
2,742 |
|
AOV - Marketplace |
|
$ |
637 |
|
|
$ |
601 |
|
|
$ |
600 |
|
|
$ |
582 |
|
|
$ |
636 |
|
|
$ |
571 |
|
|
$ |
493 |
|
|
$ |
574 |
|
AOV - Stadium Goods |
|
|
- |
|
|
|
300 |
|
|
|
336 |
|
|
|
327 |
|
|
|
301 |
|
|
|
314 |
|
|
|
304 |
|
|
|
340 |
|
Brand Platform: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Brand Platform GMV |
|
$ |
- |
|
|
$ |
- |
|
|
$ |
- |
|
|
$ |
62,671 |
|
|
$ |
101,539 |
|
|
$ |
107,459 |
|
|
$ |
66,348 |
|
|
$ |
112,327 |
|
Brand Platform Revenue |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
62,671 |
|
|
|
101,539 |
|
|
|
107,459 |
|
|
|
66,348 |
|
|
|
112,327 |
|
Brand Platform Gross Profit |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
27,464 |
|
|
|
47,543 |
|
|
|
52,480 |
|
|
|
27,729 |
|
|
|
58,738 |
|
Brand Platform Gross Profit Margin |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
43.8% |
|
|
46.8% |
|
|
48.8% |
|
|
41.8% |
|
|
52.3% |
|
- See “Notes and Disclosures” which includes “Non-IFRS and Other Financial and Operating Metrics” on page 19 for reconciliations of non-IFRS measures to IFRS measures.
Forward Looking Statements
This release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements contained in this release that do not relate to matters of historical fact should be considered forward-looking statements, including, without limitation, the expected timing of the sale of the Notes to
NOTES AND DISCLOSURES
Segment Realignment
Following the acquisition of New Guards in
Our results for first, second, and part of third quarter 2019 do not include New Guards’ performance.
Revisions to Previously Reported Financial Information
We have revised previously reported finance income and costs, loss after tax, and loss per share for each of the first three quarters of 2019. Refer to fourth quarter 2019 earnings release furnished on
Presentation Change
Beginning in second quarter 2020, we changed the presentation of our operating loss to reflect losses on items held at fair value and remeasurements, and share of results of associates, as non-operating items in the consolidated statement of operations. These items are now presented below operating loss, and all prior periods in this release reflect this change. We have made this presentation change in order to improve comparability of our period-over-period operating loss, particularly given the increased volatility of the items with a valuation dependent on our market share prices. As a result of this presentation change, the consolidated statement of cash flows now starts with operating loss rather than loss before tax as previously reported. This change had no impact on our historical loss after tax or on any of our historical unaudited condensed consolidated statements of financial position, changes in equity, cash flows or on our previously provided non-IFRS and operational measures. We determined that these presentation changes had no material impact on the previously reported financial information or on any previously issued annual financial statements.
Non-IFRS and Other Financial and Operating Metrics
This release includes certain financial measures not based on IFRS, including Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted EPS, Adjusted Revenue, Digital Platform Order Contribution, and Digital Platform Order Contribution Margin (together, the “Non-IFRS Measures”), as well as operating metrics, including GMV, Digital Platform GMV, Brand Platform GMV, In-Store GMV, Active Consumers and Average Order Value. See the “Definitions” section below for a further explanation of these terms.
Management uses the Non-IFRS Measures:
- as measurements of operating performance because they assist us in comparing our operating performance on a consistent basis, as they remove the impact of items not directly resulting from our core operations;
- for planning purposes, including the preparation of our internal annual operating budget and financial projections;
- to evaluate the performance and effectiveness of our strategic initiatives; and
- to evaluate our capacity to fund capital expenditures and expand our business.
The Non-IFRS Measures may not be comparable to similar measures disclosed by other companies, because not all companies and analysts calculate these measures in the same manner. We present the Non-IFRS Measures because we consider them to be important supplemental measures of our performance, and we believe they are frequently used by securities analysts, investors and other interested parties in the evaluation of companies. Management believes that investors’ understanding of our performance is enhanced by including the Non-IFRS Measures as a reasonable basis for comparing our ongoing results of operations. Many investors are interested in understanding the performance of our business by comparing our results from ongoing operations period over period and would ordinarily add back non-cash expenses such as depreciation, amortization and items that are not part of normal day-to-day operations of our business. By providing the Non-IFRS Measures, together with reconciliations to IFRS, we believe we are enhancing investors’ understanding of our business and our results of operations, as well as assisting investors in evaluating how well we are executing our strategic initiatives.
Items excluded from the Non-IFRS Measures are significant components in understanding and assessing financial performance. The Non-IFRS Measures have limitations as analytical tools and should not be considered in isolation, or as an alternative to, or a substitute for loss after tax, revenue or other financial statement data presented in our consolidated financial statements as indicators of financial performance. Some of the limitations are:
- such measures do not reflect revenue related to fulfilment, which is necessary to the operation of our business;
- such measures do not reflect our expenditures, or future requirements for capital expenditures or contractual commitments;
- such measures do not reflect changes in our working capital needs;
- such measures do not reflect our share based payments, income tax expense or the amounts necessary to pay our taxes;
- although depreciation and amortization are eliminated in the calculation of Adjusted EBITDA, the assets being depreciated and amortized will often have to be replaced in the future and such measures do not reflect any costs for such replacements; and
- other companies may calculate such measures differently than we do, limiting their usefulness as comparative measures.
Due to these limitations, Adjusted EBITDA, Adjusted EBITDA Margin, and Adjusted Revenue should not be considered as measures of discretionary cash available to us to invest in the growth of our business and are in addition to, not a substitute for or superior to, measures of financial performance prepared in accordance with IFRS. In addition, the Non-IFRS Measures we use may differ from the non-IFRS financial measures used by other companies and are not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with IFRS. Furthermore, not all companies or analysts may calculate similarly titled measures in the same manner. We compensate for these limitations by relying primarily on our IFRS results and using the Non-IFRS Measures only as supplemental measures.
Digital Platform Order Contribution and Digital Platform Order Contribution Margin are not measurements of our financial performance under IFRS and do not purport to be alternatives to gross profit or loss after tax derived in accordance with IFRS. We believe that Digital Platform Order Contribution and Digital Platform Order Contribution Margin are useful measures in evaluating our operating performance within our industry because they permit the evaluation of our digital platform productivity, efficiency and performance. We also believe that Digital Platform Order Contribution and Digital Platform Order Contribution Margin are useful measures in evaluating our operating performance because they take into account demand generation expense and are used by management to analyze the operating performance of our digital platform for the periods presented.
Farfetch reports under International Financial Reporting Standards (“IFRS”). Farfetch provides earnings guidance on a non-IFRS basis and does not provide earnings guidance on an IFRS basis. A reconciliation of the Company’s Adjusted EBITDA guidance to the most directly comparable IFRS financial measure cannot be provided without unreasonable efforts and is not provided herein because of the inherent difficulty in forecasting and quantifying certain amounts that are necessary for such reconciliations, including adjustments that are made for future changes in the fair value of cash-settled share based payment liabilities; foreign exchange gains/(losses) and the other adjustments reflected in our reconciliation of historical non-IFRS financial measures, the amounts of which, could be material.
Reconciliations of these non-IFRS measures to the most directly comparable IFRS measure are included in the accompanying tables.
The following table reconciles Adjusted EBITDA to the most directly comparable IFRS financial performance measure, which is loss after tax:
(in $ thousands, except as otherwise noted) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2018 |
|
|
2019 |
|
|
2020 |
|
||||||||||||||||||||||||
|
|
Fourth Quarter |
|
|
First Quarter |
|
|
Second Quarter |
|
|
Third Quarter |
|
|
Fourth Quarter |
|
|
First Quarter |
|
|
Second Quarter |
|
|
Third Quarter |
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss after tax |
|
$ |
(9,912 |
) |
|
$ |
(77,686 |
) |
|
$ |
(95,392 |
) |
|
$ |
(90,484 |
) |
|
$ |
(110,126 |
) |
|
$ |
(79,177 |
) |
|
$ |
(435,899 |
) |
|
$ |
(536,960 |
) |
Net finance (income)/expense |
|
|
(14,915 |
) |
|
|
(8,408 |
) |
|
|
(1,249 |
) |
|
|
10,689 |
|
|
|
(16,182 |
) |
|
|
34,355 |
|
|
|
20,751 |
|
|
|
14,363 |
|
Income tax expense/(benefit) |
|
|
261 |
|
|
|
560 |
|
|
|
813 |
|
|
|
(104 |
) |
|
|
(108 |
) |
|
|
2,506 |
|
|
|
(4,118 |
) |
|
|
2,882 |
|
Depreciation and amortization |
|
|
7,185 |
|
|
|
14,106 |
|
|
|
14,323 |
|
|
|
35,097 |
|
|
|
50,065 |
|
|
|
51,323 |
|
|
|
51,758 |
|
|
|
54,007 |
|
Share based payments (a) |
|
|
2,821 |
|
|
|
38,714 |
|
|
|
45,710 |
|
|
|
31,760 |
|
|
|
42,238 |
|
|
|
26,760 |
|
|
|
61,915 |
|
|
|
81,840 |
|
(Gains)/losses on items held at fair value and remeasurements (b) |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(32,286 |
) |
|
|
10,565 |
|
|
|
(65,434 |
) |
|
|
278,622 |
|
|
|
373,079 |
|
Other items (c) |
|
|
- |
|
|
|
2,493 |
|
|
|
(1,764 |
) |
|
|
10,061 |
|
|
|
5,584 |
|
|
|
5,025 |
|
|
|
1,302 |
|
|
|
860 |
|
Impairment losses on tangible assets |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
2,292 |
|
|
|
- |
|
|
|
- |
|
Share of results of associates |
|
|
(15 |
) |
|
|
(15 |
) |
|
|
(17 |
) |
|
|
(371 |
) |
|
|
38 |
|
|
|
31 |
|
|
|
494 |
|
|
|
(385 |
) |
Adjusted EBITDA |
|
$ |
(14,575 |
) |
|
$ |
(30,236 |
) |
|
$ |
(37,576 |
) |
|
$ |
(35,638 |
) |
|
$ |
(17,926 |
) |
|
$ |
(22,319 |
) |
|
$ |
(25,175 |
) |
|
$ |
(10,314 |
) |
- Represents share based payment expense.
- Represents (gains)/losses on items held at fair value and remeasurements. See “gains/(losses) on items held at fair value and remeasurements” on page 24 for a breakdown of these items.
- Represents other items, which are outside the normal scope of our ordinary activities. See “Other items” on page 24 for a breakdown of these expenses. Other items is included within selling, general and administrative expenses.
The following table reconciles Adjusted Revenue to the most directly comparable IFRS financial performance measure, which is revenue:
(in $ thousands, except as otherwise noted) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2018 |
|
|
2019 |
|
|
2020 |
|
||||||||||||||||||||||||
|
|
Fourth Quarter |
|
|
First Quarter |
|
|
Second Quarter |
|
|
Third Quarter |
|
|
Fourth Quarter |
|
|
First Quarter |
|
|
Second Quarter |
|
|
Third Quarter |
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue |
|
$ |
195,533 |
|
|
$ |
174,064 |
|
|
$ |
209,260 |
|
|
$ |
255,481 |
|
|
$ |
382,232 |
|
|
$ |
331,437 |
|
|
$ |
364,680 |
|
|
$ |
437,700 |
|
Less: Digital Platform Fulfilment Revenue |
|
|
(25,444 |
) |
|
|
(27,690 |
) |
|
|
(28,522 |
) |
|
|
(27,254 |
) |
|
|
(44,494 |
) |
|
|
(30,285 |
) |
|
|
(56,803 |
) |
|
|
(50,922 |
) |
Adjusted Revenue |
|
$ |
170,089 |
|
|
$ |
146,374 |
|
|
$ |
180,738 |
|
|
$ |
228,227 |
|
|
$ |
337,738 |
|
|
$ |
301,152 |
|
|
$ |
307,877 |
|
|
$ |
386,778 |
|
The following table reconciles Digital Platform Order Contribution to the most directly comparable IFRS financial performance measure, which is Digital Platform Gross Profit:
(in $ thousands, except as otherwise noted) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2018 |
|
|
2019 |
|
|
2020 |
|
||||||||||||||||||||||||
|
|
Fourth Quarter |
|
|
First Quarter |
|
|
Second Quarter |
|
|
Third Quarter |
|
|
Fourth Quarter |
|
|
First Quarter |
|
|
Second Quarter |
|
|
Third Quarter |
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Digital Platform Gross Profit |
|
$ |
92,632 |
|
|
$ |
80,941 |
|
|
$ |
84,106 |
|
|
$ |
83,294 |
|
|
$ |
123,572 |
|
|
$ |
97,207 |
|
|
$ |
130,579 |
|
|
$ |
143,318 |
|
Less: Demand generation expense |
|
|
(33,934 |
) |
|
|
(31,423 |
) |
|
|
(34,444 |
) |
|
|
(34,321 |
) |
|
|
(51,162 |
) |
|
|
(37,966 |
) |
|
|
(47,378 |
) |
|
|
(46,185 |
) |
Digital Platform Order Contribution |
|
$ |
58,698 |
|
|
$ |
49,518 |
|
|
$ |
49,662 |
|
|
$ |
48,973 |
|
|
$ |
72,410 |
|
|
$ |
59,241 |
|
|
$ |
83,201 |
|
|
$ |
97,133 |
|
The following table reconciles Adjusted EPS to the most directly comparable IFRS financial performance measure, which is Earnings per share:
(per share amounts) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2018 |
|
|
2019 |
|
|
2020 |
|
||||||||||||||||||||||||
|
|
Fourth Quarter |
|
|
First Quarter |
|
|
Second Quarter |
|
|
Third Quarter |
|
|
Fourth Quarter |
|
|
First Quarter |
|
|
Second Quarter |
|
|
Third Quarter |
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share |
|
$ |
(0.03 |
) |
|
$ |
(0.26 |
) |
|
$ |
(0.31 |
) |
|
$ |
(0.30 |
) |
|
$ |
(0.34 |
) |
|
$ |
(0.24 |
) |
|
$ |
(1.29 |
) |
|
$ |
(1.58 |
) |
Share based payments (a) |
|
|
0.01 |
|
|
|
0.13 |
|
|
|
0.15 |
|
|
|
0.11 |
|
|
|
0.12 |
|
|
|
0.08 |
|
|
|
0.18 |
|
|
|
0.24 |
|
Amortization of acquired intangible assets |
|
|
0.00 |
|
|
|
0.01 |
|
|
|
0.01 |
|
|
|
0.06 |
|
|
|
0.09 |
|
|
|
0.09 |
|
|
|
0.09 |
|
|
|
0.09 |
|
(Gains)/losses on items held at fair value and remeasurements (b) |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(0.10 |
) |
|
|
0.03 |
|
|
|
(0.19 |
) |
|
|
0.82 |
|
|
|
1.08 |
|
Other items (c) |
|
|
- |
|
|
|
0.01 |
|
|
|
(0.01 |
) |
|
|
0.03 |
|
|
|
0.02 |
|
|
|
0.01 |
|
|
|
0.00 |
|
|
|
0.00 |
|
Impairment losses on tangible assets |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
0.01 |
|
|
|
- |
|
|
|
- |
|
Share of results of associates |
|
|
(0.00 |
) |
|
|
(0.00 |
) |
|
|
(0.00 |
) |
|
|
(0.00 |
) |
|
|
(0.00 |
) |
|
|
(0.00 |
) |
|
|
(0.00 |
) |
|
|
(0.00 |
) |
Adjusted EPS |
|
$ |
(0.02 |
) |
|
$ |
(0.11 |
) |
|
$ |
(0.16 |
) |
|
$ |
(0.20 |
) |
|
$ |
(0.08 |
) |
|
$ |
(0.24 |
) |
|
$ |
(0.20 |
) |
|
$ |
(0.17 |
) |
- Represents share based payment expense on a per share basis.
- Represents (gains)/losses on items held at fair value and remeasurements on a per share basis. See “gains/(losses) on items held at fair value and remeasurements” on page 24 for a breakdown of these items.
- Represents other items on a per share basis, which are outside the normal scope of our ordinary activities. See “Other items” on page 24 for a breakdown of these expenses. Other items included within selling, general and administrative expenses.
The following table represents gains/(losses) on items held at fair value and remeasurements:
(in $ thousands, except as otherwise noted) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2018 |
|
|
2019 |
|
|
2020 |
|
||||||||||||||||||||||||
|
|
Fourth Quarter |
|
|
First Quarter |
|
|
Second Quarter |
|
|
Third Quarter |
|
|
Fourth Quarter |
|
|
First Quarter |
|
|
Second Quarter |
|
|
Third Quarter |
|
||||||||
Fair value remeasurements: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares issued as part of New Guards acquisition |
|
$ |
- |
|
|
$ |
- |
|
|
$ |
- |
|
|
$ |
(21,526 |
) |
|
$ |
- |
|
|
$ |
- |
|
|
$ |
- |
|
|
$ |
- |
|
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
44,014 |
|
|
|
(135,093 |
) |
|
|
(138,171 |
) |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(77,758 |
) |
|
|
(157,108 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Present value remeasurements: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Chalhoub put option |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
53,812 |
|
|
|
(8,959 |
) |
|
|
21,420 |
|
|
|
(65,771 |
) |
|
|
(77,800 |
) |
CuriosityChina call option |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(1,606 |
) |
|
|
- |
|
|
|
- |
|
|
|
- |
|
Gains / (losses) on items held at fair value and remeasurements |
|
$ |
- |
|
|
$ |
- |
|
|
$ |
- |
|
|
$ |
32,286 |
|
|
$ |
(10,565 |
) |
|
$ |
65,434 |
|
|
$ |
(278,622 |
) |
|
$ |
(373,079 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Farfetch share price (end of day) |
|
$ |
17.71 |
|
|
$ |
26.91 |
|
|
$ |
20.80 |
|
|
$ |
8.64 |
|
|
$ |
10.35 |
|
|
$ |
7.90 |
|
|
$ |
17.27 |
|
|
$ |
25.16 |
|
The following table represents other items:
(in $ thousands, except as otherwise noted) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2018 |
|
|
2019 |
|
|
2020 |
|
||||||||||||||||||||||||
|
|
Fourth Quarter |
|
|
First Quarter |
|
|
Second Quarter |
|
|
Third Quarter |
|
|
Fourth Quarter |
|
|
First Quarter |
|
|
Second Quarter |
|
|
Third Quarter |
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Transaction-related legal and advisory expenses |
|
$ |
- |
|
|
$ |
(2,493 |
) |
|
$ |
(2,236 |
) |
|
$ |
(5,061 |
) |
|
$ |
(5,584 |
) |
|
$ |
(4,925 |
) |
|
$ |
(1,799 |
) |
|
$ |
(860 |
) |
Release of tax provisions |
|
|
- |
|
|
|
- |
|
|
|
4,000 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
Loss on impairment of investments carried at fair value |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(5,000 |
) |
|
|
- |
|
|
|
(100 |
) |
|
|
(69 |
) |
|
|
- |
|
Other |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
566 |
|
|
|
- |
|
Other items |
|
$ |
- |
|
|
$ |
(2,493 |
) |
|
$ |
1,764 |
|
|
$ |
(10,061 |
) |
|
$ |
(5,584 |
) |
|
$ |
(5,025 |
) |
|
$ |
(1,302 |
) |
|
$ |
(860 |
) |
Definitions
We define our non-IFRS and other financial and operating metrics as follows:
“Active Consumers” means active consumers on our directly owned and operated sites and related apps. A consumer is deemed to be active if they made a purchase within the last 12-month period, irrespective of cancellations or returns. Active Consumers includes
“Adjusted EBITDA” means loss after taxes before net finance expense/(income), income tax expense/(benefit) and depreciation and amortization, further adjusted for share based compensation expense, share of results of associates and items outside the normal scope of our ordinary activities (including other items, within selling, general and administrative expenses, losses/(gains) on items held at fair value and remeasurements through profit and loss, and impairment losses on tangible assets). Adjusted EBITDA provides a basis for comparison of our business operations between current, past and future periods by excluding items that we do not believe are indicative of our core operating performance. Adjusted EBITDA may not be comparable to other similarly titled metrics of other companies.
“Adjusted EBITDA Margin” means Adjusted EBITDA calculated as a percentage of Adjusted Revenue.
“Adjusted EPS” means earnings per share further adjusted for share based payments, amortization of acquired intangible assets, items outside the normal scope of our ordinary activities (including other items, within selling, general and administrative expenses, losses/(gains) on items held at fair value and remeasurements through profit and loss, and impairment losses on tangible assets) and the related tax effects of these adjustments. Adjusted EPS provides a basis for comparison of our business operations between current, past and future periods by excluding items that we do not believe are indicative of our core operating performance. Adjusted EPS may not be comparable to other similarly titled metrics of other companies.
“Adjusted Revenue” means revenue less Digital Platform Fulfilment Revenue.
“Average Order Value” (“AOV”) means the average value of all orders excluding value added taxes placed on either the
“Brand Platform Gross Profit” means Brand Platform Revenue less the direct cost of goods sold relating to Brand Platform Revenue.
“Brand Platform GMV” and “Brand Platform Revenue” mean revenue relating to the New Guards operations less revenue from New Guards’: (i) owned e-commerce websites, (ii) direct to consumer channel via our Marketplaces and (iii) directly operated stores. Revenue realized from Brand Platform is equal to GMV as such sales are not commission based.
“Digital Platform Fulfilment Revenue” means revenue from shipping and customs clearing services that we provide to our digital consumers, net of Farfetch-funded consumer promotional incentives, such as free shipping and promotional codes. Digital Platform Fulfilment Revenue was referred to as Platform Fulfilment Revenue in previous filings with the
“Digital Platform GMV” means GMV excluding In-Store GMV and Brand Platform GMV. Digital Platform GMV was referred to as Platform GMV in previous filings with the
“Digital Platform Gross Profit” means gross profit excluding In-Store Gross Profit and Brand Platform Gross Profit. Digital Platform Gross Profit was referred to as Platform Gross Profit in previous filings with the
“Digital Platform Gross Profit Margin” means Digital Platform Gross Profit calculated as a percentage of Digital Platform Services Revenue. We provide fulfilment services to Marketplace consumers and receive revenue from the provision of these services, which is primarily a pass-through cost with no economic benefit to us. Therefore, we calculate our Digital Platform Gross Profit Margin, including Digital Platform third-party and first-party gross profit margin, excluding Digital Platform Fulfilment Revenue.
“Digital Platform Order Contribution” means Digital Platform Gross Profit after deducting demand generation expense, which includes fees that we pay for our various marketing channels. Digital Platform Order Contribution provides an indicator of our ability to extract digital consumer value from our demand generation expense, including the costs of retaining existing consumers and our ability to acquire new consumers. Digital Platform Order Contribution was referred to as Platform Order Contribution in previous filings with the
“Digital Platform Order Contribution Margin” means Digital Platform Order Contribution calculated as a percentage of Digital Platform Services Revenue. Digital Platform Order Contribution Margin was referred to as Platform Order Contribution Margin in previous filings with the
“Digital Platform Revenue” means the sum of Digital Platform Services Revenue and Digital Platform Fulfilment Revenue. Digital Platform Revenue was referred to as Platform Revenue in previous filings with the
“Digital Platform Services Revenue” means Revenue less Digital Platform Fulfilment Revenue, In-Store Revenue and Brand Platform Revenue. Digital Platform Services Revenue is driven by our Digital Platform GMV, including commissions from third-party sales and revenue from first-party sales.
“Digital Platform Services third-party revenues” represent commissions and other income generated from the provision of services to sellers in their transactions with consumers conducted on our dematerialized platforms, as well as fees for services provided to brands and retailers.
“Digital Platform Services first-party revenues” represents sales of owned-product, including First-Party Original through our digital platform. The revenue realized from first-party sales is equal to the GMV of such sales because we act as principal in these transactions and, therefore, related sales are not commission based.
“Digital Platform Services third-party cost of revenues” and “Digital Platform Services first-party cost of revenues" include packaging costs, credit card fees, and incremental shipping costs provided in relation to the provision of these services. Digital Platform Services first-party cost of revenues also includes the cost of goods sold of the owned products.
“First-Party Original” refers to brands developed by New Guards and sold direct to consumers on the digital platform.
“Gross Merchandise Value” (“GMV”) means the total dollar value of orders processed. GMV is inclusive of product value, shipping and duty. It is net of returns, value added taxes and cancellations. GMV does not represent revenue earned by us, although GMV and revenue are correlated.
“In-Store Gross Profit” means In-Store Revenue less the direct cost of goods sold relating to In-Store Revenue.
“In-Store GMV” and “In-Store Revenue” mean revenue generated in our retail stores which include Browns, Stadium Goods and New Guards’ directly operated stores. Revenue realized from In-Store sales is equal to GMV of such sales because such sales are not commission based.
“Third-Party Take Rate” means Digital Platform Services Revenue excluding revenue from first-party sales, as a percentage of Digital Platform GMV excluding GMV from first-party sales and Digital Platform Fulfilment Revenue. Revenue from first-party sales, which is equal to GMV from first-party sales, means revenue derived from sales on our platform of inventory purchased by us.
Certain figures in the release may not recalculate exactly due to rounding. This is because percentages and/or figures contained herein are calculated based on actual numbers and not the rounded numbers presented.
About Farfetch
For more information, please visit www.farfetchinvestors.com.
View source version on businesswire.com: https://www.businesswire.com/news/home/20201112006062/en/
Investor Relations:
VP Investor Relations
IR@farfetch.com
Media:
VP Communications, Global
susannah.clark@farfetch.com
+44 7788 405224
farfetch@brunswickgroup.com
US: +1 (212) 333 3810
Source:
Investor Relations:
Alice Ryder
VP Investor Relations
IR@farfetch.com
Media:
Susannah Clark
VP Communications, Global
susannah.clark@farfetch.com
+44 7788 405224
Brunswick Group
farfetch@brunswickgroup.com
US: +1 (212) 333 3810
UK: +44 (0) 207 404 5959