Farfetch has reported a revenue decrease of 1.3 per cent the second quarter of the year, prompting a 40 per cent decline in its share price.

Revenue fell by $7.3 million year-over-year from $579.3 million in the three months to 30 June in 2022 to $572.1 million in the during the same period of 2023.

The luxury fashion retailer said the decline was primarily driven by a 42.2 per cent decrease in its Brand Platform Revenue to $67 million, which was impacted by factors including a decline in wholesale orders.

A decrease in in-store revenue of over 15 per cent also contributed to Farfetch’s bottom line losses for the quarter, the company said.

Despite its losses, gross merchandise value for 2023 remained at $4.4 billion, up from $4.1 billion in 2022.

However, the figure represents a dip from Farfetch’s previously announced 2023 profit projection of $4.9 billion.

Commenting on the second quarter results, Farfetch chief executive José Neves said that the retailer had seen a “less buoyant luxury customer in the US and in Mainland China”, adding that recovery had “not been as robust” as expected when it reported its first quarter results.

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