Online luxury platform Farfetch, founded by Portuguese entrepreneur José Neves and partner of Alibaba, saw revenues grow 35 per cent year-over-year in 2021 to US$2.3 billion.
Neves said that the fourth quarter “clearly demonstrates the strong momentum” of the platform, adding it has gained market share in 2021.
In 2021, Farfetch – which was founded in 2007 and sells products from over 700 boutiques and brands from around the world – reported a net profit of US$1.47 billion. This was also the “first year” of adjusted EBITDA profitability, Neves said.
In late 2020, Alibaba and Switzerland-based luxury company Richemont formed a joint venture called Farfetch China, and committed to investing over US$1.1 billion in the luxury goods marketplace.
Farfetch made a US$97 million profit in the last three months of last year, including “US$217 million non-cash benefit arising from impact of lower share price on items held at fair value and remeasurements.”
In the fourth quarter, revenues grew 23 per cent to US$666 million. For the year as a whole, the company’s revenues grew 35 per cent year-over-year to a total of US$2.3 billion, CLBrief reported.