Farfetch Limited reported on Friday (Nov. 13) as part of its Q3 results that Gross Merchandise Value (GMV) surged to $797.8 million from $492 million in Q3 2019.
The eCommerce luxury fashion platform also reported digital platform GMV of $674.1 million, up from $420.3 million in Q3 2019, according to an announcement.
Farfetch reported that the rise in GMV mainly shows the expansion in digital platform GMV and a $49.7 million rise in brand platform GMV from New Guards as a result of its August 2019 acquisition and a formidable demand for merchandise in their brand collection.
“The Farfetch platform continued to accelerate in third quarter 2020, setting another quarterly GMV record and further indicating we are witnessing a paradigm shift in favor of online luxury,” Farfetch founder, chairman and CEO Jose Neves said in the announcement.
He noted that the platform “is not only capturing this opportunity but is helping drive this paradigm shift both for luxury consumers and brands.”
As for its overall results, Farfetch reported adjusted EBITDA of a $10 million loss on $438 million in revenue. The company reported $756.7 million in cash and cash equivalents as of Sept. 30, up from $322.4 million on Dec. 31, 2019.
Farfetch anticipates digital platform GMV of between $880 million and $910 million for Q4 along with brand platform GMV between $85 million and $90 million. It also foresees “positive adjusted EBITDA.”
The news comes as Burberry‘s earnings, which were announced Nov. 12, displayed a sharp drop in profits, but a return to sales growth. Other positive developments included data that showed the British icon was bringing in new and younger clients during the recovery.
But it cautioned that current and even future lockdown procedures in the European Union would hurt.
“While the virus continues to impact sales in EMEIA, Japan and South Asia Pacific, we are encouraged by our overall recovery and the strong response to our brand and product, particularly among new and younger customers,” said Burberry CEO Marco Gobbetti.