FTCH - Earnings call transcript Q1 2021

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Operator

Good afternoon. My name is Christine and I'll be your conference operator today. At this time, I would like to welcome everyone to the Farfetch First Quarter2021 Results Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers’ remarks, there will be a question-and-answer session. turn Relations. over now VP Alice I'll Investor of Instructions] the to call Ryder, [Operator Ms. may your you Ryder, begin conference.

Alice Ryder

Hello and XXXX conference welcome to Farfetch's first quarter call.

our Financial Officer; to are Stephanie Phair, Executive today our Customer and Elliot Founder, Officer. Chief Neves, Officer; Chief me Chief Chairman, our Joining Jordan, our and discuss José results

statements would made those remind forward-looking begin, you or speak results Actual Before indicated statements. our of discussions the differ our expectations statements publicly them. we revise today. no could we from and that only to like We to update materially today obligation in forward-looking include forward-looking today as will to undertake

of For on cause a to the differ, Xth, the important of section filed of see XXXX. actual Form the with risk our factors March XX-F SEC results some that please could factors discussion risk

we addition financial reported in will with measures not certain refer this accordance In call. on IFRS to

these financial slide earnings measures at You financial to call I'd reconciliations find farfetch.investors.com. both And of IFRS presentation, release of press on which José. turn are now, the our can over the to available our website non-IFRS and in like measures to the

José Neves

positive and guidance. with for digital today. GMV very luxury believe where have of reflection our by strong boost in outlook platform joining accelerated provided to and have digital seen the consumers XXXX you the performance and platform year on year GMV adoption we you, digital over iterated GMV higher is I'm year-on-year XX% group retailers. have accelerated QX, past and the growing exceed XX% thank exiting momentum shift report momentum by In adjusted drive to-date, digitization our for our luxury brands the with GMV previously online Based we the in growth. the continued us helped a paradigm grew that to strong EBITDA XXXX we our and group We we had business a for significant Thank platform strong pleased also upgraded year. expectations growth we expect full has Alice to XXXX all into both

to as entire will We are proposition enabler sustained expect which for a our continuing and is luxury we digital invest to progress industry. behind the this why global be continue

on our increasingly faster. highly marketplace units by the stock Farfetch They GMV accelerated in brands were quarter, you build focusing our our number of highest are growth XXXX nearly across on first As mentioned fact last retailers. and listings will our of I they're road seeing luxury our our to both five update strategic on with a selling three, across map key partner brands each as and progress are and a two we strategic our themes strategy. Chapter strengthening major LNR with global partnerships to the the China, you platform. our for retail Starting on boutiques record QX since and two, luxury the total Stephanie partnerships, as customer aggregate QX the luxury remaining experience. we evidenced luxury X,XXX that unrivaled let in XXXX. for and brand new update the continue our I'll And the Farfetch relationships

In direct-to-consumer fact high-margin quarter. sales of during enjoyed e-concession on growth more average our than XXX% top year-on-year XX the brands

to supply their to deeper access allows from selection broader who a shift growth services at channels have our concession in e-commerce Brand.com more distribution QX we than continuing for been As to solutions Last enables wholesale one to direct-to-consumer our launch FPS' clients announced year. Farfetch which on those a also service, XX% we which of includes FPS least of partners. multi-brand digital as luxury and more support our of on and quarter e-concessions retailers more enabler, This Solutions also mature powered in Platform average the are advance enterprise FPS FPS to of in or real-time. brands the

brands Following launch Cucinelli further on and expand more delighted Harrods.com Zegna. e-concession With service e-concession transformation solution unique direct-to-consumer actively the our we Brunello to in prioritizing but enable on we e-concessions to were channels, believe XXXX, Farfetch of for by Burberry's only more facilitating Harrods not include the also also and industry. our this broader e-concessions successful the as a for marketplace, will

remain We to continuing in market. laser-focused China. successes on this to our build on Turning

fashion fact spring market The our where channels QX. luxury us supply restrictions physical from strong attract consumers and enabled luxury of channels of we valuable with were overall commerce to to for witnessed across to fashion industry. US, and consumers trends our our luxury clients broad the best demonstrate offerings fashion where operations app, customers and stores and option further of website sustained outsized highlights the in on brands localized lockdown engage performance a via exclusive largest engage growth Chinese to services in robust continued services retail since XXXX our also local across and faster paradigm social with in access shopping have proposition Mainland events. the which luxury and Our the China marketplace when we who than stylists heavy appeal have private such our lifted, and via shift clients in content, across deliver demonstrates the the our China, grow have and base global that latest provide we the consumers both authority in continues our underpins WeChat as products for This our our

our this store in early indications TLP our the success building with of Tmall's to on you, market in we very from the back launch exciting seen business, the to on luxury update our these I'd like China pavilion, front of On a March. in we've critical initiatives. boost thriving feel will presence

with in audience; us the boosting awareness a by incremental of two For brand driving and sales. partnerships key and reaching being: team much objectives multifaceted the Farfetch opportunities China one, wider two,

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China our Tmall As have storefront in XXX,XXX many visitors first own fans app two months. as store and to we our a the result, as gained to have we seen

already results of sales, very pleased our are In building momentum JD. sales we and launch comparable objective the see are drive terms to are of our that multiples on from to

delivering Farfetch offering luxury entice while our fashion luxury engaging for significant represents seamless with journey customer $XXX to TLP we mono-brand content China to a customer for a we for and LNR have it own of continue Overall, dedicated is Luxury and ag full thrilled business online New become LNR powers of gain a Tmall and offering of and to industry. offline, marketing and achieve to the luxury retail Luxury the retailers of navigating brands deliver on a solutions, to app. one integrated Farfetch platform Pavilion, for Retail experience China are engine, view and single to to stores, LNR, Tmall their our suite Onto with channels, storefront our integration. one on with enterprise vision virtually opportunity a interactions with As expect across all opportunity build destinations retailers, or connected the the channel their all Farfetch five which XXX-degree a our have channels. brands billion also meaningful leveraging and rich FPS the of hyper-personalized consumers enables also to brand massive pool experience the within the and buttons operating on XXXX data Farfetch be their luxury luxury transform by or a retail nearly along to beyond. LNR on directly whether The customers' global in Tmall's made for leverage progress. presence can both Farfetch global and all with unifying where across continue fantastic system only representing home and we screen, FPS the and Marketplace full Tmall we the

showcasing the met we journey of of solutions at suite the Brook than customers for our LNR reaction. also about which last with retailers, brands are week very These location, Browns also Street Just event have great hosted our where more solutions enthusiastic XXX was been an shopping executives technology and top new enabling experience.

this In the our entire partnering the Marketplace will I'm partners square the retail really the new create Sao announce Retail in-store with Connected momentum incredible XXX,XXX Monaco, our Cidade also such Paulo Upon Farfetch Solutions around to development implement experience complex's current I being Doha, our for seller luxury to like square LNR this pleased see a PRINTEMPS Matarazzo we heart Brazil, technologically with to signed Retail Finally, complex we XXX,XXX to luxury by experience world. connected across have as I would village. earlier store design the went and I be in and Qatar, can to am of in foot pleased solution advanced boutique technology department front, embraced CHANEL to the foot In retail the flagship. In following. announce live month. of help vision Connected confirm

like share Finally, our to an will LNR in be China, we exploring with on update further opportunities Alibaba. I'd partner

and accelerated heels Farfetch joint On of teams. in the the Pavilion, launch innovation discussions and extension we plan our an Alibaba as a on Luxury have China innovation operate LNR to to of retail launch lab Tmall

on technologies brands journey. Stephanie is luxury decided store am the experience. that update two to I'll We New let us Retail revolutionize to personalize now around remaining tremendously vision also our are latest you concept LNR bear the and the launch that in in Luxury physical and excited bringing luxury showcase a China strategic have to traction joining retail to gaining the I retail the world customer pillars.

Stephanie Phair

on QX customer for you, chapter initiatives, which Thank update brand growing our I'm million everyone. share José. are and pleased to consumers. our experience of unrivaled X.X our under two and Hello, retaining pillars, active at customer an captured base aimed

of is of the are the on luxury view our fabric even supply highlights said, On have key brand The campaign and in brought four which ways Farfetch's element of such deep full brand funnel truly of by the program goes and our in teams That I every message customer an enabled while proposition. second luxury woven requires working, that or offering, XXXX differentiator called identity initiated unique opened commercial of brand change campaigns is department, more And building beyond pillars start yielding of brand creating and a we regardless our understanding emphasizing pandemic Along way culture, basket the worked also have end-to-end for as align takes to from building business. global the a organization campaign Farfetch year. are last on campaign support company-wide together, first, track and preferences, in successes two key investing introduced of teams marketing ensuring time and mindset brand new and important show progress. and metrics, an year a a needs awareness more pillar measures and examples, to in last our journey. marketing. integrated customer our our the view was with our fundamental these boutique knowledge our indications Farfetcher the one brand boutiques to closely that a with rebrand to This visible believe reflect a at their brand our a way, more It approach that year have movement to results customer expertise the where we extends and doors, which initial consideration. our bring hired campaigns key hashtag look ago. we of Recent the The at with the their aims brand into markets. of brand the built launch we that demand

and shop. increase seen the Over markets would than that is been XX and pre us in words, in of have consider the months, we Farfetch In to have Western key one customers where investing places last or they luxury China, first any higher the in other increase first post-campaign, other telling funnel an of overall upper we year-on-year seen was competitor QX awareness in we of one have marketing, the market. the consideration

market have the Western is share organic our in results by a share survey proxy strong strategy measures working. which our Google searches in demonstrate brand QX, As increase with our consideration. search, which brand is markets, peer combination we seen set, portion of that search our XX% at our year-on-year, US, of of In for largest we look our among

Our strategies with press, year-on-year key These of to our to Farfetch marketing initiative. turn from significant marketplace, key applauded on in in taken own in our on a engagements of believe re-brand the notice luxury Farfetch to campaigns. campaigns increased a and only and coverage admiration are to brand brands styling their has that In as consumer our and brand partner, XX marketing our of component execute marketplace. their building confidence partnerships strategic a of the contributors growing choice talent QX, on success contributed We brand our Farfetch has in launched we content a also partnership channel. which low-cost increased partners number our have brand our approach and

our Our with proposition strategy brand our deploying Group while to boutique differentiate from unique our innovation an all to on our New our our to brand and by our playing reach delivering strength Guards capabilities focus ongoing leveraging partnership, acquisition on global features. exclusive

is pillar. offering our crucial which customer is which customers unrivaled to of All experience, an fifth strategic our

is four-part celebration from here New where Group demonstrating by deliver centered with program designers. strategic value Palm world, our capsules continues an such First our collection include: of This an Ramadan, celebrate brands. around relationship a investment second activation Ambush Guards off-the-grid we be multiplied our in is curated highlights their partner the Gucci key a Middle Eastern We immersive and Some exclusive leveraged Regional as long-term with sustainability with to activated we connection. Gucci, in offering and Angels. we from and customers labels localization sought-after as to international exclusive key XX and

by efforts Our evidenced Month. and a are collaboration our Black platform Balmain with to positively Farfetch be for our ESG for good, recently such as for and Nataal partnerships edit History curated Twigs also FKA

customers promotions, restoration contribute continued the our trends. mix And our acquired outpacing reduce compared and towards higher enhance generation improved QX trends brand These our that partnership cohorts cohort. on to for also offerings. experience retention of QX of we demand see earliest a In luxury with strategy As the sale business via rates. enhance efforts also to the delighted we to in look retention customers see also a our we targeted experience partnerships repurchase revenue, a believe XXXX Thanks these we But we and our Fix our existing Farfetch continued customers full-price the are this customer higher to our were finding we encourage as are and acquired we quarter have XXXX whom, QX, to positive better innovation pandemic during have to circularity. to cohort from platform, historic start-ups service drive retention. to Restory can offer via of but The one service, co-branded were with in the marketing services ultimately open

program the were with care XX% first to times this environmental on now, the results of tell of The programs. Elliot Finally, our such the in our via outlook. bags customer their Report as insights many various in our our hand did and initiatives edition more financial XXXX, brands data inform sold to and minimizing Conscious customers of all services, addition to ESG conscious they we that I'll fact help to thrilled Earth the Trends harnesses numerous platform, report over us also publish And across And as they is about incorporating Day. in three call in second discuss and practices impact. industry as to overall our XXXX the life Luxury

Elliot Jordan

Thank you, Stephanie, and hello, everyone.

and group platform. of to increase first million to adjusted QX $XXX further compared year-on-year stronger of unit demand in million. XX% the in We growth, leverage across strong delivered to minus delivered Farfetch platform revenue quarter with year-on-year traded we $XX This $XXX increase GMV products profitability growing improved The XXXX of growth XX% have GMV has our minus digital in platform year-on-year position services demonstrates million. million million this of XX% $XXX $XX a with $XXX Alongside EBITDA in revenue XX% and driven digital economics, achieved a a continued to XXXX. operating to million for

of is XX% as to an quarters. company accelerated last growth own by out and year-on-year of is result, value raising financial within in year-on-year addition a the XXXX, guidance XX% rest guidance, to remain quarter year-on-year. result fastest across the within share second of expectations underpinned economics buying an price of of and from the overall with within the digital price the China, over in at US, saw I'd As the growth final average around the weeks growth XX QX. full increase UK, in the margin XXX demand to in digital year-on-year margin quarter new acceleration digital growth the strong XX%. four geographically order continue an the key existing of East, acceleration margin previous ahead digital points GMV This quarter platform order year the This the a in driver first-party higher the of of the marketplace, in where platform we in turn customers point previous very improvement a the platform gross confident the customers, an to The remains and items growth overall to performance this last and within stronger Mainland, of platform particularly across on adjusted higher further and position driven This of orders about increasing segment. Browns trade up our XXX,XXX by gain mix and we brands. result Unit by in is price growth year year-on-year EBITDA is consumers the increase guidance contribution to GMV with business basis level. like New relative from diverse was notably where and and through to some Starting strong this reiterating with This direct-to-consumer profitability XX% a our highlights financial a higher full run full growth mix of was Middle QX. from the the X% the marketplace. Guards

We reduced proposition. revenue. and these offsetting, improvements of across Partially third-party investment impact also were first-party higher cost of the in the promotions

duties result and impact and logistics the handling the of Union, increase a charges as a other digital linked higher taxes services order. First, an UK's cost COVID-XX per European withdrawal European in from from

engagement, of three-month is of highest spend growing the margin investment within online, demand new the growth XX.X%; versus reflected QX took cohorts constant a months, for channels represent customers, customers, marketplace, a for updates opportunity We XXXX this digital in include: continued last XX% original. improvement XX%; XX% existing decision LTV ratio the well first-party service third-party out over of number marketplace payback platform to respective now is in retention QX year-over-year ever XX.X% and of which of QX. take to six and on engagement belonged on which to on particularly the platform rate year-on-year of demand QX acquisition revenue to our strong key XXXX develop some cohorts above the first-party back This of growth global of on the back CAC platform of, customer the GMV a Other QX translated from QX, GMV clear XXXX currency media for XX.X% basis and also spend and which into demand and generation to reinvest China. of GMV, customer X% luxury digital of digital

the continue own now on retailers, to stock digital platform the as proposition wholesale the Turning brand retail direct-to-consumer we across and brand-enhancing relationships, the brand channel improving strategic focus we our platform means, platform, fewer and higher-margin on growth with and to where highly partnering profitability. locations. balance the This moderating between

a brand quarter. slightly platform GMV provided and result, last million, guidance $XXX achieved of the As of ahead revenue the

margins this expanded XX% XX% year from gross profit. year to of Importantly, $XX million to last deliver gross

million. in the notes gain has is JV recent the reverses and on quarters value. share-based charges a resulted price. and is platform, our XX%, Middle is corporate expense production to leverage charges, operating is mention convertible expenses, in seen to A quick compared which from of funnel of in The the initiatives items payment This our we and studios after to leverage engagement gain of amortization QX $XX settlement will leverage. technology a have adjusted fair net $XX cross-border respectively, year-on-year overall Farfetch Brexit-related upper deliver result facility line our spend now This and reduction activities as functions Farfetch million since in share our XXXX our December QX against Netherlands, in held over East revenue. new continue our operating cost XX, building million to growing of by tax million. investment where of long-term a of offering. marked at XX% and develop the of fulfillment result was into was beauty we share Turning this growth significant and customer profit XX% Farfetch drive of the the XX% direct of the including depreciation within $XXX proportion strategic and to mitigate brand $XXX some price, our we technology This our a growth believe the

ahead Based outlook and are the coming on the to across for have the digital platform seen for consumption for broader full upgrading the demand half, global indicators of look This GMV in year-to-date, to positive represent the year driving upgraded we expectations XX% strong in full between of year. second confidence to the momentum longer-term the regards and backdrop more invest allows leading our This be digital two-year with now to luxury continue now sustainable we quarter the Let's would investment year-on-year. XX%. additional to XX% growth and growth growth. with that be platform delivering customer platform us XX% we long-term development, engagement additional opportunity in increasing and to growth to will a focus on QX

there such, the guidance X% no for of to the margin change EBITDA at adjusted level. to is where expectations As X% reiterate the profitability, we previous

Last media For to as whereas our to customers. expected moving the to last associated items continue worn the to QX, Digital EBITDA into $XX minus XX% be now to being digital shift expected the $XX to This spread between Brexit in-season wholesale Jose? platform year And and is at new closer are win by and year 'XX account growth navigate partners between we million. winter XX% reflects a these within digital across position Brand digital to and of for to profit challenges now GMV and and This to finally, for are QX the takes the margin revenue which of year, annualization to platform million platform will build lapping in $XX shifted of contribution invest now is to of of fall margin were order is this the deliveries, XXXX, revenue we customer XX%. the means million platform to QX is expected on full XX% forward. majority revenue be shipments season expected platform strong like-for-like adjusted of into GMV brand $XX are at winter QX spend XX% and cohorts. shipments continue short-term shipments year-on-year. million. launches harrods.com XX% growth the QX, minus on customer our be platform is QX. gross expectation FPS, which towards offwhite.com

José Neves

Thank you, Elliot.

on how recycling our results dedication by could than without X,XXX which close clearly have not efforts the me vision, superb more and continuous against long-term achieved demonstrate our execution Farfetcher's. of Let been these

position to a built growth the enhancing result billion unique to the continue opportunity as a Thank see share ask you. strong industry platform all $XXX Q&A. in gain relationships of for the within to of the for continue becoming to for luxury very our platform leverage puts infrastructure our nearly we I'll our proposition to operator drive in have us open for now which partners the we We deepening call consumers global luxury. the and the

Operator

[Operator Instructions] comes Your Stephen Ju from of CS. first question from line the

open. line is Your

Stephen Ju

Okay. Thank you.

in the what retail technology stuff But mirrors announcements hangers. clearly, was wanted we that at into think José, at to luxury and I new other to the presentation some showing the does given buying on and we it in So like Tmall in quarter And Browns. you assume your ask the retailers you invest of were about things expenses they're of you on second to the Ponton. that Chanel demand It look the investment like And expense perhaps this China? be inefficiency with will as retailers guidance within require ongoing your should as the pitch what Thanks. up these in terms to G&A they Elliot, acquisition see? guys on assumptions brand can ramp marketing embedded campaigns as expect well in are what return of is may

José Neves

you. Thank

in technology numbers already weeks of just increase only to very, back And the the in from a have March on our it's coming And measuring we on the Retail launched Connected few of sales return Technology revenue seeing boutiques specifically. are of of Monaco. but -- investment. double-digit in Of Chanel terms days in And is the as sales course, it's course, we're from old, the encouraging. very expanding we early that Chanel

customer. the think is more connected I key if obviously and so transformational in the I the we in here journey that's important a -- boost deliver think But fully than double-digit So that for itself. consistent any right, retailer to

if a you the customers brand you're today coming don't if a know that into So are retailer, the store. you're or

XX%, brand You came are stores XX%, that a the luxury hear unrecognized. XX% customers the that of say into

which the shelves. they know don't You pick products off

to which don't rooms the is take they That know in industry. the and You fitting revolutionary. what we absolutely products that are is changing

connected the with Farfetch retired know and an the are R&D walk-in. app app, So often in We know identify the in legally combination comes of the trying store an the customer devices Tech which we shop that the the Smart floor there's we and the we store. can effort is that with consumer efforts

walk-in, as the in the smart tech you up. you browse it As products store picks the

So that lifted. it's product exactly around shoes turned moving store it is it's of being its the also it the huge. moving knows If pair been is it's It's and around. a knows where

no they piloted data store also this incredible any derived to They itself in the the scan be that experience. So between need in the position a and know here. list. are store can wish who get the don't there, out user That's don't get minutes RFID a in -- myriad consumer. in that touched own of couldn't that what you our customers data spend And believe insightful it there's a can XX from involved their -- from possibilities this can product an fact eyes. terms is unprecedented of store, to triangulates and from you possibilities the completely from Like on into product. as get right and is the you CRM that. then And that need And customer you everything that

a to very the another and So think We connected excited. because industry we're is brings level completely going very, to retail it revolutionize is this journey.

just website. the is what have it bought, the recently you what list you shop what into store you on you browsed. come had is but the assistant wish knows the what you in Not As have

unified at developed market each These we're to developments XXX,XXX very what's to Matarazzo. this go feet as ready So are view that delivering. unified products unified view call what off-line multibrand, of across customer it's of And And of and working I that's going Cidade Printemps to view journey monobrand, sometimes getting it's retail I that's well. at and nirvana. it think we're online luxury have and large scale a excited square

So think great space I watch because here. traction there's the

Elliot Jordan

seeing the Hey what Stephen, and I'll pick marketing there. we're up spend on

be customer row results QX environment fantastic is paradigm For quarters customers year to with from on shift last in the online last is there of growth continues. value. we the thereabouts to which right shows customers the I customers in back this a QX, And lifetime XXX,XXX new fantastic or seeing cohorts. seeing capturing three we're acquired us as and the engagement new we're customers mean at that that XXX,XXX moment the QX the is the that

CAC is years. cohorts it I for seeing earlier as from cohort than stronger investment. previous these the faster the So, two the much over X-month LTV payback We're equivalent see on a on

these the to it's on thing do really lean in So, opportunities. right to

we're the promo of acquiring seeing particularly increasing We're business growth quality fact customers are acquiring the price markdown i.e. the that's spend price. price also the sales coming we're coming is sales that is around on customers elsewhere. means are first-party than in full down strong. We sales mix efficiencies so at seeing through full full whilst the or many very promo faster growing And

as that period. a isn't acquired acquired our on a promo forward of full in that's the You LTV remember customer moving during great might price as terms from history customer

and this with leaning momentum So out now. in as on to customer growth the continue on in thing we the is as as engage exited touched see we're of José be capture right seeing strong the base. to right it US It's the really the thing do before doing And we customer quarter. to build right the actually to China

really on, sort around the with have from work customer. we're the as investment weeks then seeing So of, early handling on also relatively brand Union results year-on-year. challenges around the, as also duties costs QX. in in you earlier terms the in staying team managing stable order some refresh the why that coming year-on-year say And the UK’s to step seeing the contribution. short-term of good, we It's and to the and Stephanie you're costs across that reflects QX but numbers, slight demand the customers. that campaigns done of, primarily and this challenges are reflecting our That's brand that's said from And the European up in sort through withdrawal generation Farfetch the coming in proposition due

in marginally SG&A just So three again, the move QX. that profitability quarters. being leaning into coming that's the move numbers towards is sort which full year EBITDA of hit we the And year-on-year we position reflects forward as for as what over

Operator

comes from next question Morgan Stanley. Your from the line Lauren of Schenk

line Your is open.

Lauren Schenk

there's Great. in and digital of, prepared Thanks And March. in seen performance what way have help of impacts sort Curious, of, May. your quantify helpful. anniversary-ing like regions where sounded be much. accelerated Thanks of anything to on early if was regionally offwhite.com so sort the question. that sort really so you And of sort generally, great? of, in would on terms the US harrods.com us the April gave in in month can It platform much. and reopened? one, how Elliot, the will comment of quarter you've then have regional stores terms areas performance in the you modeling or then much second growth Any remarks

Elliot Jordan

great question. Lauren, Hi, Sure.

the regional yes, we're by very data. encouraged So,

So QX sign. through The starting China accelerating to in was way good in QX, strong UK particularly the of here is locations QX, retail a into the April obviously, all UK. reopen clearly

of that sort to early growth the we the of reopening. And particularly strong weeks US, the weeks that So into the after strong carry of, in. even did drive now out we're quarter three that or four the quarter and last was parts continue through

continue that XX%, numbers full really than strong of it's about all The key Hence good better to growth think, is guidance is into really price. seeing we're the most think And is I why slightly quarter. the I XX% what So in Street.

Where very, their offering they're have full the with XXXX well. that the strong the price offering into have superbly Spring/Summer being growth. very platform we sellers on our collections doing linked rewarded So

growth is value XX%. like price stock full average. is So up overall over up Year-on-year the something our

a going So campaign coming the quarter. stock the into got lot we've over of

stronger. customers. locations the with from paradigm to what enjoying is getting And shopping able stay. that customers convenience, our This although online. a offer that so sense the and retail still the here also to team definitely of logistics They're is service Plus online We're selection shift speed that means. to is the backdrop to much pleased we're very have reopened are they

in we're so online continued Middle strong demand seeing seen the opened demand options from now across quarter there been even are customers. there. East Middle And the have store though good The even East, same we've for though stores

overall share of starts year. across go luxury think I sort rest really, as there's around So the to grow the of plenty to of,

to deliver of performing from step the and by very very the is from and basis said the QX terms and how on broadly QX is like-for-like continuing annualization is FPS the question XXs to confident that to down in growth. are as that other a modeling clients marketplace their In Harrods strong I'm XX about of large offwhite.com. José very, the

to that sort step about of, that, So down now is seeing all QX we're from becoming more QX like-for-like.

Operator

comes line Your next Oliver the Chen question from from of Cowen.

is line open. Your

Oliver Chen

new of customer are of Thank The your may Thank mix? And impacted early thoughts going as these also Tmall? both forward encouraging. your the the on chat dynamic think learnings, you. the from base assortment product Elliot would to Hi. about customers you. and how apparel and manifestation about through very this be think how love Farfetch Tmall loyalty take that What are by reads in and accessing terms you your also you'll approach just and attractive to AOV that relative Farfetch

Stephanie Phair

days, be by think, And we for Hi, the whilst to results. Yes, positive. some Oliver, question. are very your we have encouraged it's Stephanie. Thanks good it's I TLP early indicators

what going compelling a The is really strong standalone a have really stand-alone I think proposition. we that back is to very app Farfetch about business think in in China have we China.

all brands the there. on of We luxury have

And a is complementary about really as so the app thinking Tmall way we're the business.

out, circle two loyalty -- The to channels this multiple how is practice standard really thinking on pointed through channels. how used between of and in So I idea we multiple can and virtuous our think this functions build these this Chinese to the I China. The is pipeline And think working as consumer about team attribute. you channels. is

thinking base, is how how So learning TLP. But to script, as to we're his to also looking do it's about our that how game. customer about consciously It's play in that speak can really results, it we very at mentioned on build audiences. José learning business how we different really about segment

So about how upside really should from really standpoint. and can app Chinese think a customer this be own and complementarity our we

Elliot Jordan

full very as that categories buying into said we coming price. AOV, mix through a very about word I'm We right price and optimistic And just as move AOV clearly customers forward. average on the if the higher -- on, strong that's I have selling earlier

time average casual this You'll wear, last at at clothing, of the people home selling style in fit lower comes know were year, relaxed stay price. obviously a all which

clothing, actually customers into is terms event-driven is going the our highest up in seeing -- category are above and those and What price the tailoring dresses or We categories watches the more was out buy jewelry. fine of leading point overall growth. within higher which average growth

fine jewelry had growth AOV growing strong. we section. again also watches in and obviously particularly well accessories jewelry, very strong and push helps growing triple-digit we as the within which And very So up are the in children's,

AOV positive rest we that the should year. travel of the optimistic be very as we're So through

Operator

the Your JPMorgan. next from of question from line comes Anmuth Douglas

open. Your is line

Unidentified Analyst

Doug. taking Hi. question. is for Thanks the Katie This on for

on Tmall Pavilion. just Farfetch up Luxury Following on launch

that will meaningful areas on the will which to XXXX? do in are be bigger have view a channel make you the what Thanks. term, of a channel? curious Just this And strengthen longer

José Neves

Yeah.

I think general. China we about first excited, are really, really in

will know today for growth are winning As critical already, will industry this of It Chinese of China the and we China. in you absolutely the size be engine be customer industry. and XX% is luxury of

We fast. growing very are

And own innovation the launch approach, -- U.S., faster largest to -- channels. WeChat. this that is us right? had primarily our brings We'll there. as through we to faster marketplace on continue successful which multichannel a Tmall. market see average So But than products are our the of than So we the innovative very growing China

are We we launched. these after results really, two real We're seeing really customers. months really about engagement early from excited

customers female the So are the And customer. our of are visited and X complementarity what's TLP visited that see with there. that X, traffic app the exciting, definitely whilst on engaging very the same number only the in so customers demographics that more We is Tier brands Tier China. storefront, our Farfetch in

because Jack know Daniels, to which it’s not I our in a is is be on are easy team Browne, operations example, they you, a for on are they in Tmall Chinese larger Tmall, easy NGG need encouraging or Marine Tmall, they I'm and can And you not in in much So to entity, has Serre, probably. right? top be very like about. tell NGG, very, China they you open take brands if need China weren't than Thom XX will brands these you not talking on -- directly it brands

it really, I this complementarity. because is really exciting So shows think

Chinese Tmall One category, build primarily. they big which they don't brand when search are Baidu on China. same fashion is customers products of the they was Taobao, primary the goals in fashion search search on in for to our They Taobao, app. shopping for

momentum said, a player we're And so storefront terms going Farfetch -- year. And all on this our terms to we're in similar China and critical in brand as track. is very that seeing last signs. awareness had to of XXXX to of already And we're saw always we for a meaningful build channel in with sales make seeing very, encouraging sales, multiple in times and China it's business the another we we beyond. in We're continue

also so luxury is happy in Alibaba accelerating just partnership. the to that, very, from encouraging, new lab So very, and for retail is of agreed overall. China an which launch very coming acceleration on incredible innovation very the back We've our of news, China

Operator

from next question comes [indiscernible]. line of The the

Your line open. is

Unidentified Analyst

Elliot, Hey, diluted and for to trying planning the us help uptick fully guide to And maybe, there. Can quarter I in platform third quick that out. just count just Just the shift, for the know what just converts? us that talk maybe smooth kind you understand you're Thanks. about brand or you could understand understand could Is quantify the just you share of on that us to the let in happened help shift QX? GMV from then, everyone. the what revenue thanks, went two brand the this quarter, fall questions, platform there. understand real

Elliot Jordan

talk me let happening I mean, brand Yeah seeing the -- platform. of absolutely, broadly is hi, what's we're with to just what you sort

product period therefore, to deliver more partners had New The we're product. they is in Guards for longer for fresh really isn't means stock it the that pleased sell-through industry. really mark enter with longer seeing the Group across is up So product as adopt able has the broadly supply And the down And in sort their effectively, this previously that, to This customers. consumers perception are sale. done. selling means there's The within window. retailers And the backing strengthen to stores. allowing that's we're in again, to the retail which drive season. businesses And landing ultimately, drops the price brand's our And really and market. season overall full ready mix. for the able chain prior a has our early to the to with season, that, now a we're And something not as that of

about so I, last And drop is effectively seeing the we're into compared that QX. what talking moving we're to year

of season. will we normally of into we it sales, shared as with whole slight the terms increase X% in a move the across sort would the bulk saw of for number so QX, QX, year-on-year QX. that I've expect, X% So Clearly in to

sort would of quarters that sort in to the the put to drive up of be for that sure to make X% a you growth. model that So overall is need two X% number your QX, year-on-year X%

of by position. first rift a the we're the time is up notes. average so count, profitable of convertible million that share And margin weighted three to $XXX We're the this of on number sharing obviously, million. shares basis. dilution the of between terms basic at on a In diluted for seeing effectively the That because $XXX goes the

roughly, the So we've the million November $XX And is $XX notes, February on million. of notes The of million XXXX dilution. that, million which $XX top May is dilution. share employee from million aggregated got $XX.X then The of schemes notes option, $XX there. dilution also

shareholders. years all plans, for reconciliation of aligns or last So over the colleagues grants And three the cumulative Farfetch there. I made option as so the obviously motivations to of that's which team to effectively in schemes, of being those are sort said the long-term incentive

Operator

for time final Louise Singlehurst open. will one is your The question from Goldman Louise have We come from more Sachs. question. line

Louise Singlehurst

a everyone. questions. for I'm taking Thanks Hi. I can. guidance, evening at to going stab Good have my if

conservative the the I If had big guess, versus year base million about of very new at about of I encouraging and The looks rate. at look a obviously guidance quarter. the rate active the insight we increase run I guess, been run maybe we still got pace increased can think million if customers a you you though it that lots each numbers, what look access? X tell for think trends customer ago. X.X even the quite us has of cohort and about from tonight as

the impact just Thank about alluded second is, access average inventory to you to orders Jose some tail a long distribution, I had mega with a I'm on, correctly billion we're levels. the about question about brands a wondering, the thinking returns that Are we early if think I of was missing up a you. reads. trick private lot here the on having to of bigger disproportionate of levels if brands China talk not in really for net and smaller So I just that? may. opportunity brands And and the big We the brands the

Stephanie Phair

of then Elliot But the number your active to hand customers we largest Hi, right Louise, guidance. it's on yes, take the I'll you're Stephanie. million. and I of will first have question over X.X part

X.X last successive sort the of quarters. grown million We have over three

a quality balance the and is efforts retention. is by our momentum full But We've So are sales. between results. customer. acquired those that always this that acquisition them and products, we're often customer retention we're as acquired really through really aided and is fact we've there seeing a seeing value This a through good news the it's high that high price

think terms a sort of of of in number is measures And retention we one access of so them. of about efforts, our which

per actually many for year-on-year a improvements but sign is are on the is customer. about seen at XX% we And orders order access One access We probably we've there. posted measure most the look have year-on-year per customer. who sort approaches asked of retention, specifically their from members and increase you many, And to visible access customer. since we seeing

So, value a exchange into base. drive the app us. efforts good leaning who such the to with seeing push customers this and from same through notifications have essentially access as to sales also in giving way opted customer We're other that we're us

think on So LTV long-term on we is very see around are rate really customer built we a confident new this very both I value good And that repurchase continuing metrics strong ratio. momentum retention and to and in. CAC

Elliot Jordan

to obviously And then the Louise, I historically in see think of last we businesses mix from looking year. sort dropout time, order a that large in e-commerce terms met first dropout seeing the what from is of And XX-month those of last rate we're retained. of forward, as building of on explained sort I in all cohorts we're terms

new is number the like-for-like become customers per delighted to Tiffany yes, out the but retention that As seeing capture really we're previous to we're the XXX,XXX stop cohorts quarter, back, looking those large going we to need will fairly annualize these now numbers, absolutely than be And and that offset numbers. impressive like-for-like. but have be and was continuing saying, is better to still more to we're that

continuing obviously, FPS of as annualize to on talked as reflects like-for-like those saying strong what like-for-like. there's become clients, said of not growth reflects new today. obviously, year-on-year customers drive those incremental be QX XX% and for from order the all to then the number no annualization. existing XX% we've now and good any about about an AOV. QX And So I of the as will into growth growth we I'm go numbers this quarter to sort a new And talk It from all as clients of in earlier increase FPS in to client customers growth, but FPS all

José Neves

great around I supply question differentiation question think, brands. versus believe supply on your brands super China, a I smaller is and

of So unique terms you of let advantage try in me terms the lay the of in in give China. supply our to land

the on that you our UK UK be are you're the same our the in from up brands over calling assuming those or from brands the So see. see calling that brands clear, US Chinese we're China app. To bringing to customers X,XXX the

when a it's deal. we So a a brand, global do deal with

available bring super brands from on XXX Valentino's of the to the have the But assortment of e-concessions So likes of those China et unique Farfetch Gucci Prada app. this the is the are cetera those we we what direct world, a all brands.

super wouldn't have find what in China Milan, that brands. and a on And So we're the count SKU super expanded those unique brands now count that proposition for were we've even in Chinese in said they is an go even customers York Paris, Tmall, online. to Chinese And from presence for of brands on SKU very used can of order Tmall this bringing a incredible the they done assortment incredible and right? X.X customer the stores is value consumer. average to to the travel So products that that these on New find terms physical price we've in the

for We the is. XX% right? creators Farfetch store. world. our because around excited customers not just are app. the was the we're have active China is Farfetch, average And of going brands, with they're And our traction exposing this offering audience much these know to because smaller small in are plus longer on China, XXX engaged to China customers you even engaged. fare at have question curators much, mission. all Tmall we consumers we be So our it And how those actually brands Farfetch, and very Tmall million can million don't fashion knew also in they're will how a they imagine price incredibly full exposed exposed on have that rather on is shoppers the on China they okay of we're and transformational spot brands. really This sale connecting $XXX didn't Tmall. brands And we You integration they are and to luxury of knew and but the then X.X mark role a the on our With a one know from on didn't Tmall higher. single in it

investors all this focused XX% sales but our which a offer. take And on targeting and of rate is are with as and said, right? is XX side complementarity, us. to about on an it's think those curated on so are focused more incrementality. brands of results They're is many higher of the extremely would brands. small the brands, for complementarity the for about I And happy all and complementary those So it's I showing on on also so top And we're Tmall know course, average the Avant it's we, you our so rate. profitable that they're As know Garde channel also everyone take channels line, that we're above also cool analyst more like of far. different tremendous that us, I audiences smaller

Alice Ryder

in dialing few good thanks months. a you Well in. a Terrific. to everyone for We night. with Have look forward speaking

Operator

for participating. call. Thank today's concludes conference This you

disconnect. now may You

Farfetch (FTCHQ) 14 May 212021 Q1 Earnings call transcript