What happened
Shares of Farfetch (FTCH +0.00%) were up 30% as of 2:30 p.m. EST Friday after the luxury fashion retail platform announced better-than-expected third-quarter 2019 results.
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So what
More specifically, Fartfetch's quarterly revenue skyrocketed roughly 90% year over year to $255.5 million, helped by a 58.7% increase in gross merchandise volume (GMV) to $492 million. Within that total, digital platform GMV grew 37% (or 40% at constant currencies) to $420 million -- well above guidance for 30% to 35% growth. Trending toward the bottom line, that translated to an adjusted net loss of $0.18 per share.
By comparison, most analysts were modeling a significantly wider adjusted net loss of $0.37 per share on revenue closer to $252 million.
Now what
"I am very pleased with our continued progress in building the global platform for luxury," added Farfetch founder, CEO, and co-chairman Jose Neves. "We had a fantastic Q3, beating all our expectations, and continuing to capture market share at a rapid pace."
For the fourth quarter, Farfetch reiterated its expectation for digital platform GMV to increase in the 30% to 35% range and raised its outlook to call for an adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) loss in the range of $21 million to $31 million.
