Online- luxury goods retailer Farfetch has revealed a growth in its preliminary first quarter figures but has seen a slowdown in its larger markets, particularly in Europe and the US amid the coronavirus crisis.
Farfetch has also been facing an increase in promotional activity from some industry participants, as well as retailers “assessing production capacities for winter collections in light of some factory closures”.
The company said it has not witnessed “any material impact to its diversified supply and logistics platform to date”, but added that any prolonged interruptions to operations of fulfilment centres and production studios “would have a material adverse impact on our business.” Despite this, Farfetch expects the online channel will be a major beneficiary of any spending that does happen.
Meanwhile, its preliminary figures for the first quarter showed a general merchandise value (GMV) growth of between 43 per cent and 46 per cent and digital platform GMV growth that comes in between 17 per cent and 19 per cent higher.
It also said its brand platform was expected to deliver GMV of around £83.1M, in line with expectations.
