“We had days of record sales in these markets, not just on Farfetch.com, in the application [da empresa] but also at the Tmall Luxury Pavillion, so the beginning was very promising”, says the responsible to Negócios, in a conversation regarding the results of the third quarter.Single’s Day, created in 2009 by Chinese giant Alibaba, is the most important shopping day in China, eclipsing Black Friday and Cyber Monday. Signed on November 11th, as the date consists of four equal digits, all of them one, the event promises hefty discounts in several product categories. According to figures disclosed by the company, the amount amounted to 84.54 billion dollars, 73.82 billion euros. This was not the first year that Farfetch “embarked” on the “Singles Day” trip, but it was a debut at Tmall, where it has been present since March of this year. “It was the first time at Tmall. But in the past, as we have been present in China forever, we had obviously already had Single’s Day”, explains Luís Teixeira.
With Black Friday approaching and brands putting themselves in the field to entice customers with discounts, Farfetch also indicates it has bright expectations for the next week. “Black Friday week is traditionally the biggest week for many retailers operating in this industry. Obviously we have very positive expectations given that we have stock available, that our platform is prepared and that our people are well motivated to create yet another important milestone in Farfetch’s history.”
Farfetch posted revenue of $583 million for the quarter, reflecting a 33% year-on-year increase. The luxury fashion platform created by Portuguese José Neves posted profits of US$769.1 million, against losses of US$536 million last year. This net positive result includes a non-cash benefit of $901 million – which stems from the positive impact that falling share prices over the period had on convertible bonds issued by Farfetch, the company said in Thursday’s statement.Regarding the results for the quarter ended in September, Luís Teixeira highlights the rise in the GMV (gross merchandise value) indicator, which registered a year-on-year increase of 28%, reaching 1,017 million dollars. In view of the pre-pandemic period, this person in charge highlights that this indicator “doubled” compared to the third quarter of 2019.
Ongoing negotiations with Richemont
Last Friday, Farfetch confirmed to the market that it is in talks with Switzerland’s Richemont, leading the shares to soar more than 20%. The company created by José Neves indicated that it is “in discussions with Richemont regarding a potential expansion of its existing strategic partnership Luxury New Retail”. Richemont owns one of the companies named as Farfetch’s rivals, Yoox Net-a-Porter.
Asked about the subject, Luís Teixeira underlines that “there are ongoing negotiations”, without advancing more information, preferring to highlight the potential of a possible agreement.
“Farfetch is a platform and as a platform – and within what is our FPS business unit (Farfetch Platform Solutions) obviously it is continuously trying to capture customers and establish partnerships with brands”, he details. “So our goal is obviously to make these partnerships and have these customers with us as quickly as possible. As indicated in the statement, the only thing that exists today between Farfetch and Richemont is talks about a potential partnership. because there is nothing else to go forward.”
“If you ask me if I think this is a very big opportunity for both institutions, from my point of view, if it happened tomorrow it would be ideal. Now the timings will be those within what is normal.”
Source: Jornal de Negócios by www.jornaldenegocios.pt.
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