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The company announced the forecasts on its capital markets day. Farfetch’s shares have plunged more than 34% following the announcement, adding to its significant losses already this year.
For 2023 the company sees Gross Merchandise Value (GMV) of $4.9 billion. It represents a forecasted increase of approximately 20% to 22% year-on-year from the company’s full-year 2022 outlook. Farfetch sees GMV in 2023 driven by the growth of the underlying business of 8% to 10% and GMV from signed partnerships of approximately $500 million.
2023 adjusted EBITDA Margin is seen between 1% to 3%, an increase from the company’s outlook of (3)% to (5)% in 2022, driven by improved Gross Profit and Order Contribution margins in addition to operating cost efficiencies of approximately $85 million. However, it will be partially offset by $170 million in costs to support new partnerships.
In its 2025 forecast, the company said it sees adjusted revenue at approximately $3.5 billion, with GMV of roughly $10 billion.
In addition, Gross Profit Margin, as a percentage of adjusted revenue, is forecasted to be approximately 60%, while adjusted EBITDA margin is predicted to be 10%, driven by order contribution margin performance and the scaling of operating costs.
By Sam Boughedda
