Luxury e-commerce platform FarFetch has hit profitability for the first time.

The company’s revenue rose 64 per cent year-on-year to $1.7 billion in 2020, and with its gross merchandise value (GMV) growing 49 per cent year-on-year to $3 billion.

FarFetch’s GMV hit £970 million for its final quarter, while it’s Q4 revenue rose 23 per cent to £497 million.

FarFetch’s quarterly gross profit margin rose to 47.1 per cent for the final quarter, up from 46.1 per cent in 2019, while the total figure for the entire financial year rose to 46 per cent from 45 per cent.

The news come after the luxury marketplace first made its Initial Public Offering (IPO) in September 2018.

The pandemic saw the British-Portuguese marketplace grow its sales; it reported revenue growth of 46 per cent to $485 million in the first quarter of 2021.

FarFetch has also been active in terms of acquisitions over the past year, purchasing resale platform Luxclusif for an undisclosed amount in December.

In addition, the company has also formed several partnerships, Farfetch confirmed a global strategic partnership with Alibaba and Richemont to provide luxury brands online in 2021, giving enhanced access to the Chinese market.

“Our fourth quarter results clearly demonstrate the strong momentum behind the Farfetch platform,” said José Neves, Farfetch founder, chairman and chief executive. “We exit the year having once again delivered market share capturing GMV growth in 2021 along with our first year of adjusted EBITDA profitability.”

He added: “This positions Farfetch for an incredible 2022 focused on continuing to lead the online luxury fashion industry, growing faster than the runner-ups, and expanding profitability.”

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