UNITED STATESSECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549  

FORM 6-K  

REPORT OF FOREIGN PRIVATE ISSUERPURSUANT TO SECTION 13a-16 OR 15d-16

UNDER THE SECURITIES EXCHANGE ACT OF 1934For the month of February 2019

Commission File Number: 001- 38655  

Farfetch Limited(Exact Name of Registrant as Specified in Its Charter)

  

The Bower211 Old Street

London EC1V 9NRUnited Kingdom

+44 (0) 20 7549 5400(Address of principal executive offices)

  Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

Form 20-F   ☒             Form 40-F   ☐

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):   ☐

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):   ☐            

 

 On February 28, 2019 , Farfetch Limited will hold a conference call regarding its unaud ited financial results for the fourth quarter ended December 31 , 2018. Acopy of the related press release is fur nished as Exhibit 99.1 hereto.

 

  

ExhibitNo.   Description

   

99.1   Press Release of Farfetch Limited, dated February 28, 2019 

 

 SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by theundersigned hereunto duly authorized.   Farfetch Limited     Date: February 28, 2019 By: /s/ José Neves    José Neves    Chief Executive Officer 

 

Exhibit99.1Exhibit99.1 

FarfetchAnnouncesFourthQuarterandFullYear2018ResultsFarfetchAnnouncesFourthQuarterandFullYear2018Results • GeneratedRecordGrossMerchandiseValueof$1.4Billionin2018and$466MillioninQ42018GeneratedRecordGrossMerchandiseValueof$1.4Billionin2018and$466MillioninQ42018• ContinuedtoCaptureShareinOnlinePersonalLuxuryGoodsMarketwithPlatformGMVUp56%in2018–GrowingMoreThanTwiceasContinuedtoCaptureShareinOnlinePersonalLuxuryGoodsMarketwithPlatformGMVUp56%in2018–GrowingMoreThanTwiceas

FastastheOverallOnlineIndustry–andUp51%inQ42018FastastheOverallOnlineIndustry–andUp51%inQ42018• Q42018RevenueGrew55%withPlatformServicesRevenueUp68%inQ42018Q42018RevenueGrew55%withPlatformServicesRevenueUp68%inQ42018• ActiveConsumersUp45%andNumberofOrdersIncreased58%inQ42018ActiveConsumersUp45%andNumberofOrdersIncreased58%inQ42018• ExpandsPartnershipwithJD.comtoCompleteIts"PremierGatewaytoChina"forLuxuryBrandsExpandsPartnershipwithJD.comtoCompleteIts"PremierGatewaytoChina"forLuxuryBrands LONDON,U.K.February28,2019LONDON,U.K.February28,2019–FarfetchLimited(NYSE:FTCH),theleadingglobaltechnologyplatformfortheluxuryfashionindustry,todayreportedfinancialresultsforthefourthquarterandfullyearendedDecember31,2018. “Byallmeasures,2018wasablockbusteryearforFarfetch,”saidJoséNeves,FarfetchFounder,CEOandCo-Chair."Wecontinuedtoleadtheonlinepersonalluxurygoodsmarket,growingGMV55%fortheyear–morethantwiceasfastastheindustry." "Wealsoexitedourfirstdecadeasacompanywithanincrediblefoundationforrealizingourplatformvisionglobally,includinginChina,withtheannouncedacquisitionofToplifesolidifyingFarfetchasthePremierLuxuryGatewaytoChina." "Overthenexttenyears,theluxuryindustryisexpectedtogrowtoanestimated$500billion,andonlinesaleswillpotentiallygrowtorepresentanincremental$100billionopportunity.Farfetchisuniquelypositionedtocapturethelion'sshareofthisopportunity."ElliotJordan,CFOofFarfetchsaid,"IamthrilledwithourrecordGMVperformanceandthegrowthofFarfetchduring2018,whichexceededexpectations.OurincreasingscalehasenabledustoleverageourefficienciesandleanintoourcustomerpropositionwithnewinitiativessuchasourAccess loyaltyprogram,toboostthelifetimevalueofourcustomersandenhancelong-termshareholdervalue." 

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ConsolidatedFinancialSummaryandKeyOperatingMetricsConsolidatedFinancialSummaryandKeyOperatingMetrics(inthousands,exceptasotherwisenoted): 

ThreemonthsendedDecember31,ThreemonthsendedDecember31, TwelvemonthsendedTwelvemonthsended

December31,December31, 20172017 20182018 20172017 20182018

ConsolidatedGroup:ConsolidatedGroup: GrossMerchandiseValue(“GMV”) $ 310,718 $ 466,490 $ 909,826 $ 1,407,698Revenue 126,482 195,533 385,966 602,384AdjustedRevenue 102,486 170,089 311,784 504,590AdjustedEBITDA (23,409) (14,575) (58,079) (95,960)AdjustedEBITDAMargin (22.8%) (8.6%) (18.6%) (19.0%) LossAfterTax (54,816) (9,912) (112,275) (155,575)

Platform:Platform: PlatformGMV $ 306,954 $ 462,176 $ 894,392 $ 1,392,104PlatformServicesRevenue 98,722 165,775 296,350 488,995PlatformGrossProfit 62,829 92,632 196,581 291,706PlatformOrderContribution 39,574 58,698 127,379 194,411PlatformOrderContributionMargin 40.1% 35.4% 43.0% 39.8%

FarfetchMarketplace:FarfetchMarketplace: ActiveConsumers 935.8 1,353.4 935.8 1,353.4NumberofOrders 600.1 945.2 1,881.0 2,913.0AverageOrderValue(“AOV”)(actual) $ 670.4 $ 637.3 $ 620.0 $ 618.6

 RecentBusinessHighlightsRecentBusinessHighlights  • TheFarfetchMarketplacecontinuedtoincreaseitsshareintheonlinepersonalluxurymarket,andallthreegeographicregions–

Americas,EMEAandAPAC–exceeded50%GMVgrowthin2018  • EnteredintoanagreementtoacquireandintegrateJD.com'sToplifeintoFarfetch'sChinaplatform,gainingLevel1accessonthe

JD.comapp,whichcombinedwithFarfetch'ssite,app,WeChatstores,CuriosityChina,andlogisticssolutionsissettoprovideluxurybrandsafullsuiteofsolutionsforaccessingtheChinesemarket

  • Completedtheacquisitionofpremiersneakerandstreetwearmarketplace,StadiumGoods,inJanuary2019,expandingFarfetch'sofferinginthefast-growing$70billionpremiumsportswearmarket

  • FarfetchBlack&WhiteSolutionslaunchedsixnewbrandsitesinfourthquarter2018andendedtheyearwith17clients.RecentlaunchesincludetwoLVMHbrands,JWAndersonandEmilioPucci.AlsoenteredastrategicpartnershipwithHarrods,theworld'smostfamousdepartmentstore,tocreateastate-of-the-artglobale-commercedestinationfortheircustomersandproviderelatedservices

  • InitiatedtheglobalrolloutofAccess ,Farfetch’scustomerloyaltyinitiativedesignedtorewardfrequentandincreasedspendwithbenefitsrangingfromearlyandexclusiveaccesstovariouseventsandsales,freeshipping,extendedreturns,apersonalstylistandFashionConcierge,amongothers

  • AddedbreadthanddepthtoourMarketplaceofferingwiththeadditionofnewsellersincludingluxurybrands,GiuseppeZanotti,Acne,andAltuzarra.Alsoexpandeddepartment

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  storepartnershipswiththelaunchesofRubaiyat,apremierluxuryfashionretailerinSaudiArabia,andTryano,aspecializedconceptdepartmentstoreinUnitedArabEmirates

  • CollaboratedwithBalenciagatolaunchanexclusivecapsulecollectiononFarfetch.com,andteamedupwithErmenegildoZegnatolaunchitsErmenegildoZegnaXXXcapsulecollectionintheU.S.

  • EnhancedFulfilmentbyFarfetchcapabilitiesinEuropewithadditionofafourthfullyscalablewarehouseinRome,Italy  • ExpandedBrownsCEO,HolliRogers'roletoalsooverseeFarfetch'sfashionstrategyasthecompany'sChiefFashionOfficer FourthQuarter2018ResultsSummaryFourthQuarter2018ResultsSummary Gross Merchandise Value and Platform GMV GMVincreasedby$155.8millionfrom$310.7millioninfourthquarter2017to$466.5millioninfourthquarter2018,representingyear-over-yeargrowthof50.1%.PlatformGMVincreasedby$155.2millionfrom$307.0millionto$462.2million,representingyear-over-yeargrowthof50.6%. TheincreasesinGMVandPlatformGMVwereprimarilydrivenbya57.5%increaseinNumberofOrdersfrom600,100infourthquarter2017to945,200infourthquarter2018,whichprimarilyresultedfroma44.6%growthinActiveConsumersto1.4million,andanincreaseintransactionsperActiveConsumeraswesawstrongdemandfromconsumersacrossourglobalmarkets.Thesefactorswerepartiallyoffsetbythe4.9%decreaseinAOVfrom$670.4to$637.3,whichmainlyreflectstheforeigncurrencytranslationimpactoftheU.S.dollarappreciationoverthepastyear,aswellasincreasedinvestmentsinourcustomers,whichresultedinalowerleveloffulfilmentrevenuerelativetoPlatformGMV. Revenue Revenueincreasedby$69.1millionyear-over-yearfrom$126.5millioninfourthquarter2017to$195.5millioninfourthquarter2018,representinggrowthof54.6%.Theincreasewasprimarilydrivenbyhigherplatformservicesrevenue.Platformservicesrevenueincreasedby$67.1millionor67.9%year-over-year,reflectingincreasedPlatformGMV,withhighergrowthinfirst-partyascomparedtothird-partyGMV.Third-PartyTakeRateremainedrelativelyflatyear-over-year. Revenuebytypeofgoodorservice(inthousands): 

ThreemonthsendedDecember31,ThreemonthsendedDecember31, TwelvemonthsendedDecember31,TwelvemonthsendedDecember31, 20172017 20182018 20172017 20182018

Platformservicesrevenue $ 98,722 $ 165,775 $ 296,350 $ 488,995Platformfulfilmentrevenue 23,996 25,444 74,182 97,794In-storerevenue 3,764 4,314 15,434 15,595

Revenue $ 126,482 $ 195,533 $ 385,966 $ 602,384

 Cost of Revenue and Gross Profit Costofrevenueincreasedby$39.6million,or64.1%year-over-yearfrom$61.8millioninfourthquarter2017to$101.3millioninfourthquarter2018.Theincreasewasprimarilydrivenbytheincreasesincostofgoodsassociatedwithfirst-partysales,aswellasthedelivery,packagingand

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transactionprocessingexpendituresincurredasaresultofanincreasedNumberofOrdersinfourthquarter2018ascomparedtotheprioryearperiod. Ourgrossprofitmargindecreasedfrom51.2%infourthquarter2017to48.2%infourthquarter2018primarilyduetolowerfulfillmentrevenueperorder,onaverage,asMarketplacecostefficiencieswereoffsetbyinvestmentsincustomerinitiatives,includingourloyaltyprogram.Additionalfactorsimpactinggrossprofitmarginincludeanincreasedmixoffirst-partysales,whichhaveadifferentgrossmarginprofilethanourthird-partybusiness;andtheimpactofretailpricing,particularlyonfirst-partygrossmargin. Selling,generalandadministrativeexpensesbytype(inthousands): 

ThreemonthsendedDecember31,ThreemonthsendedDecember31, TwelvemonthsendedTwelvemonthsended

December31,December31, 20172017 20182018 20172017 20182018

Demandgenerationexpense $ 23,255 $ 33,934 $ 69,202 $ 97,295Technologyexpense 12,148 18,159 31,611 68,224Depreciationandamortization 3,029 7,185 10,980 23,537Sharebasedpayments 7,715 2,821 21,486 53,819Generalandadministrative 52,861 56,679 165,981 228,891

Selling,generalandadministrativeexpenses $ 99,008 $ 118,778 $ 299,260 $ 471,766

 Fourthquarter2018demandgenerationexpenseincreased45.9%year-over-yearto$33.9millioninfourthquarter2018,or20.5%ofplatformservicesrevenue,representingayear-over-yearimprovementof309bps,whichprimarilyresultedfromperformancemarketingefficienciesindrivingPlatformGMVgrowth.TheseefficienciespartiallyoffsetthegrossprofitmarginimpactonPlatformOrderContributionMarginwhichdecreased468bpsfrom40.1%infourthquarter2017to35.4%infourthquarter2018. Technologyexpense,whichisprimarilyrelatedtoresearchanddevelopmentandoperationsofourMarketplacefeaturesandservices,increasedby$6.0million,or49.5%,infourthquarter2018comparedtothesameperiodin2017,whichwasprimarilydrivenbya54.7%increaseintechnologystaffheadcountandhighersoftwareandinfrastructureexpensestosupportthecontinuedgrowthofthebusiness. Generalandadministrativeexpenseincreasedby$3.8million,or7.2%,infourthquarterof2018comparedtothesameperiodin2017.GeneralandadministrativecostsasapercentageofAdjustedRevenuedecreasedfrom51.6%infourthquarter2017to33.3%infourthquarter2018,reflectingimprovedefficiencyofcorporateandplatformservicecosts,aswellasareductionofaccruedemployeecompensationexpense. Sharebasedpaymentsdecreasedby$4.9million,or63.4%,infourthquarter2018comparedtothesameperiodin2017,primarilyduetothefairvaluere-measurementofourcash-settledsharebasedpaymentawardsandprovisionforemploymentrelatedtaxesonsharebasedpaymentawards. Adjusted EBITDA AdjustedEBITDAwas($14.6)millionforfourthquarter2018,improvingby$8.8million,or37.7%,comparedtothesameperiodin2017.AdjustedEBITDAmarginimprovedfrom(22.8%)infourth

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quarter2017to(8.6%)inthesameperiodof2018,reflectingbenefitsfromourpriorperiodinvestmentstosupportourgrowthaswellasimprovedefficienciesinselling,generalandadministrativeexpenses,whichhavegrownataslowerratethanAdjustedRevenue. Loss After Tax

Lossaftertaxdecreasedby$44.9million,or81.9%year-over-yearinfourthquarter2018to$9.9million.Thiswasdrivenbyayear-over-yeardecreaseintheoperatinglossfrom$34.3millionto$24.6millioncombinedwithunrealizedforeignexchangegainsfromtherevaluationofourreceivablesandpayablesinfourthquarter2018.

 OutlookOutlook Thefollowingforward-lookingstatementreflectsFarfetch’sexpectationsasofFebruary28,2019basedontheperformanceoftheMarketplacethroughtheinitialfirstquarter2019period:Forthefirstquarterof2019,PlatformGMVisexpectedtogrowapproximately40%yearoveryear,andAdjustedEBITDAmarginisexpectedtobeapproximately(22%)-(24%),priortoanybenefitfromtheadoptionofIFRS16whichbecameeffectiveonJanuary1,2019. Forfullyear2019,PlatformGMVisexpectedtogrowapproximately40%.Thecompanyexpectstocontinuetomakeinvestmentstogrowthebusiness,includingforitsrecentacquisitions,whilealsoleveragingcosts,andestimatesfullyear2019AdjustedEBITDAmarginofapproximately(18%)-(19%),priortoanybenefitfromtheadoptionofIFRS16. ConferenceCallInformationConferenceCallInformation Farfetchwillhostaconferencecalltoday,February28,2019at4:30p.m.EasternTimetodiscusstheCompany’sresultsaswellasforward-lookinginformationaboutFarfetch’sbusiness.Listenersmayaccesstheliveconferencecallviaaudiowebcastathttp://farfetchinvestors.com,wherelistenerscanalsoaccessFarfetch’searningspressreleaseandslidepresentation.Followingthecall,areplayofthewebcastwillbeavailableatthesamewebsitefor30days. 

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  UnauditedinterimcondensedconsolidatedstatementofoperationsUnauditedinterimcondensedconsolidatedstatementofoperations

forthethreemonthsendedDecember31forthethreemonthsendedDecember31

(in $ thousands, except share and per share data)  

         

20172017 20182018 RevenueRevenue 126,482126,482 195,533195,533 Costofrevenue (61,753) (101,336)Grossprofit 64,729 94,197 Selling,generalandadministrativeexpenses (99,008) (118,778)Shareofprofitsofassociates 8 15Operatingloss (34,271) (24,566) Netfinance(cost)/income (20,171) 14,915Lossbeforetax (54,442) (9,651) Incometaxexpense (374) (261)LossaftertaxLossaftertax (54,816) (9,912) LosspershareattributabletoownersoftheparentLosspershareattributabletoownersoftheparent Basicanddiluted (0.23) (0.03) Weighted-averageordinarysharesoutstandingWeighted-averageordinarysharesoutstanding Basicanddiluted 241,527,626 299,495,657

 

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 UnauditedinterimcondensedconsolidatedstatementofcomprehensivelossUnauditedinterimcondensedconsolidatedstatementofcomprehensiveloss forthethreemonthsendedDecember31forthethreemonthsendedDecember31 (in $ thousands)             20172017 20182018 LossfortheperiodLossfortheperiod (54,816) (9,912) Othercomprehensiveincome/(expense):Othercomprehensiveincome/(expense): Items that may be subsequently reclassified to consolidatedstatement of operations (net of tax): Exchangedifferencesontranslationofforeignoperations 5,607 (7,305)Gainsoncashflowhedges - 436 Othercomprehensiveincome/(expense)fortheperiod,netoftaxOthercomprehensiveincome/(expense)fortheperiod,netoftax 5,607 (6,869)Totalcomprehensivelossfortheperiodattributabletoequityholdersoftheparent,netoftaxTotalcomprehensivelossfortheperiodattributabletoequityholdersoftheparent,netoftax (49,209) (16,781) 

 7

 

 UnauditedinterimcondensedconsolidatedstatementofoperationsUnauditedinterimcondensedconsolidatedstatementofoperations forthetwelvemonthsendedDecember31forthetwelvemonthsendedDecember31 (in $ thousands, except share and per share data)             20172017 20182018 RevenueRevenue 385,966385,966 602,384602,384 Costofrevenue (181,200) (303,934)Grossprofit 204,766 298,450 Selling,generalandadministrativeexpenses (299,260) (471,766)Shareofprofitsofassociates 31 33Operatingloss (94,463) (173,283) Netfinance(cost)/income (17,642) 19,866Lossbeforetax (112,105) (153,417) Incometaxexpense (170) (2,158)LossaftertaxLossaftertax (112,275) (155,575)

LosspershareattributabletoownersoftheparentLosspershareattributabletoownersoftheparent Basicanddiluted (0.50) (0.59) Weighted-averageordinarysharesoutstandingWeighted-averageordinarysharesoutstanding Basicanddiluted 223,465,734 264,432,214

  

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  UnauditedinterimcondensedconsolidatedstatementofcomprehensivelossUnauditedinterimcondensedconsolidatedstatementofcomprehensiveloss forthetwelvemonthsendedDecember31forthetwelvemonthsendedDecember31 (in $ thousands)             20172017 20182018 LossfortheperiodLossfortheperiod (112,275) (155,575)Othercomprehensiveincome/(expense):Othercomprehensiveincome/(expense): Items that may be subsequently reclassified to consolidatedstatement of operations (net of tax):                Exchangedifferencesontranslationofforeignoperations 33,504 (24,142)Gainsoncashflowhedges - 436 Othercomprehensiveincome/(expense)fortheperiod,netoftaxOthercomprehensiveincome/(expense)fortheperiod,netoftax 33,504 (23,706)Totalcomprehensivelossfortheperiodattributabletoequityholdersoftheparent,netoftaxTotalcomprehensivelossfortheperiodattributabletoequityholdersoftheparent,netoftax (78,771) (179,281)

 9

 

 UnauditedinterimcondensedconsolidatedstatementoffinancialpositionUnauditedinterimcondensedconsolidatedstatementoffinancialposition (in $ thousands)            

December31,December31,20172017 December31,December31,

20182018

Non-currentassetsNon-currentassets Tradeandotherreceivables 9,193 10,458Intangibleassets 74,041 103,345Property,plantandequipment 26,696 37,528Investments 278 566Investmentsinassociates 58 86Totalnon-currentassetsTotalnon-currentassets 110,266 151,983CurrentassetsCurrentassets Inventories 50,610 60,954Tradeandotherreceivables 18,180 93,670Cashandcashequivalents 384,002 1,044,786TotalcurrentassetsTotalcurrentassets 452,792 1,199,410TotalassetsTotalassets 563,058 1,351,393 EquityandliabilitiesEquityandliabilities EquityEquity Sharecapital 9,298 11,994Sharepremium 677,674 772,300Mergerreserve - 783,529Foreignexchangereserve 633 (23,509)Otherreserves 38,475 67,474Accumulatedlosses (329,177) (483,357)TotalequityTotalequity 396,903 1,128,431 Non-currentliabilitiesNon-currentliabilities Provisions 5,142 13,462Otherliabilities 5,123 15,342Totalnon-currentliabilitiesTotalnon-currentliabilities 10,265 28,804 CurrentliabilitiesCurrentliabilities Tradeandotherpayables 136,744 194,158Otherliabilities 19,146 -TotalcurrentliabilitiesTotalcurrentliabilities 155,890 194,158TotalliabilitiesTotalliabilities 166,155 222,962TotalequityandliabilitiesTotalequityandliabilities 563,058 1,351,393

 

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UnauditedinterimcondensedconsolidatedstatementofcashflowsUnauditedinterimcondensedconsolidatedstatementofcashflows forthetwelvemonthsendedDecember31forthetwelvemonthsendedDecember31 (in $ thousands)   20172017 20182018 CashflowsfromoperatingactivitiesCashflowsfromoperatingactivities LossbeforetaxLossbeforetax (112,105) (153,417)Adjustmentsfor: Depreciation 3,648 7,338Amortization 7,332 16,199Non-cashemployeebenefitsexpense–sharebasedpayments 16,578 53,819Netlossonsaleofnon-currentassets 42 1,028Shareofprofitsofassociates (35) (33)Netfinanceincome (1,261) (19,866)Netexchangedifferences 12,196 7,621Changesinfairvalueofderivatives 44 (506)Changesinworkingcapital Increaseinreceivables (598) (72,151)Increaseininventories (35,163) (10,345)Increaseinpayables 47,406 57,432Changesinotherassetsandliabilities Increaseinnon-currentreceivables (3,826) (1,265)Increaseinotherliabilities 7,365 -Increaseinprovisions - (701)Interestpaid (591) (536)Incometaxespaid (352) (822)NetcashoutflowfromoperatingactivitiesNetcashoutflowfromoperatingactivities (59,320(59,320)) (116,205(116,205)) CashflowsfrominvestingactivitiesCashflowsfrominvestingactivities Acquisitionofsubsidiary,netofcashacquired 195 -Paymentsforproperty,plantandequipment (12,616) (21,137)Paymentsforintangibleassets (18,997) (50,978)Interestreceived 2,833 8,865Paymentforequityinvestments (278) (288)NetcashoutflowfrominvestingactivitiesNetcashoutflowfrominvestingactivities (28,863(28,863)) (63,538(63,538)) CashflowsfromfinancingactivitiesCashflowsfromfinancingactivities Proceedsfromissueofshares,netofissuecosts 322,097 859,526Repaymentofloannotes (21,955) -NetcashinflowfromfinancingactivitiesNetcashinflowfromfinancingactivities 300,142300,142 859,526859,526 NetincreaseincashandcashequivalentsNetincreaseincashandcashequivalents 211,959211,959 679,783679,783Cashandcashequivalentsatthebeginningoftheperiod 150,032 384,002Effectsofexchangeratechangesoncashandcashequivalents 22,011 (18,999)CashandcashequivalentsatendofperiodCashandcashequivalentsatendofperiod 384,002384,002 1,044,7861,044,786

 

  

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 UnauditedinterimcondensedconsolidatedstatementofchangesinequityUnauditedinterimcondensedconsolidatedstatementofchangesinequity (in $ thousands)           

ShareSharecapitalcapital

ShareSharepremiumpremium

MergerMergerreservereserve

ForeignForeignexchangeexchangereservereserve

OtherOtherreservesreserves

AccumulatedAccumulatedlosseslosses

EquityEquityattributableattributable

tothetotheparentparent

Non-Non-controllingcontrollinginterestinterest

TotalTotalequityequity

BalanceatJanuary1,BalanceatJanuary1,20172017 7,8447,844 340,988340,988 - (32,871(32,871)) 19,85719,857 (216,901(216,901)) 118,917118,917 (1(1)) 118,916118,916

ChangesinequityChangesinequity Issueofsharecapital,netoftransactioncosts 1,454 336,686 - - 2,161 - 340,301 - 340,301340,301

Totalcomprehensiveincome/(loss) - - - 33,504 - (112,275) (78,771) - (78,771(78,771))

Sharebasedpayment–equitysettled - - - - 16,457 - 16,457 - 16,45716,457

Transactionswithnon-controllinginterests - - - - - (1) (1) 1 00

BalanceatDecemberBalanceatDecember31,201731,2017 9,2989,298 677,674677,674 -- 633633 38,47538,475 (329,177(329,177)) 396,903396,903 -- 396,903396,903

BalanceatJanuary1,BalanceatJanuary1,20182018 9,2989,298 677,674677,674 -- 633633 38,47538,475 (329,177(329,177)) 396,903396,903 -- 396,903396,903

ChangesinequityChangesinequity Capitalreorganization 652 (677,674) 783,529 - - - 106,507 - 106,507106,507Issueofsharecapital,netoftransactioncosts 2,044 772,300 - - - - 774,344 - 774,344774,344

Totalcomprehensiveloss - - - (24,142) 436 (155,575) (179,281) - (179,281(179,281))

Sharebasedpayment–equitysettled - - - - 28,563 1,395 29,958 - 29,95829,958

BalanceatDecemberBalanceatDecember31,201831,2018 11,99411,994 772,300772,300 783,529783,529 (23,509(23,509)) 67,47467,474 (483,357(483,357)) 1,128,4311,128,431 -- 1,128,4311,128,431

  

 

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FarfetchLimitedFarfetchLimitedSupplementalMetricsSupplementalMetrics

20172017 20172017 FirstQuarterFirstQuarter SecondQuarterSecondQuarter ThirdQuarterThirdQuarter FourthQuarterFourthQuarter FullYearFullYear (inthousands,unlessstatedotherwise)(inthousands,unlessstatedotherwise) ConsolidatedGroup:ConsolidatedGroup: GrossMerchandiseValue(“GMV”) $ 176,701 $ 217,806 $ 204,601 $ 310,718 $ 909,826Revenue 79,425 93,146 86,913 126,482 385,966FulfilmentRevenue 16,128 17,632 16,426 23,996 74,182AdjustedRevenue 63,297 75,514 70,487 102,486 311,784In-StoreRevenue 3,715 3,616 4,339 3,764 15,434DemandGenerationExpense (12,429) (16,694) (16,824) (23,255) (69,202)TechnologyExpense (5,078) (6,050) (8,335) (12,148) (31,611)ShareBasedPayments (3,770) (4,752) (5,249) (7,715) (21,486)DepreciationandAmortization (2,313) (2,706) (2,932) (3,029) (10,980)GeneralandAdministrative (29,537) (42,433) (41,150) (52,861) (165,981)AdjustedEBITDA (4,190) (9,860) (20,620) (23,409) (58,079)AdjustedEBITDAMargin (6.6%) (13.1%) (29.3%) (22.8%) (18.6%)Platform:Platform: PlatformGMV $ 172,985 $ 214,190 $ 200,263 $ 306,954 $ 894,392PlatformServicesRevenue 59,582 71,898 66,148 98,722 296,350PlatformGrossProfit 40,759 49,735 43,258 62,829 196,581PlatformOrderContribution 28,330 33,041 26,434 39,574 127,379PlatformOrderContributionMargin 47.5% 46.0% 40.0% 40.1% 43.0%Farfetch Marketplace:Farfetch Marketplace: ActiveConsumers 728.2 796.3 854.7 935.8 935.8NumberofOrders 385.0 468.2 427.7 600.1 1,881.0AverageOrderValue(actual) $ 581.2 $ 600.4 $ 605.2 $ 670.4 $ 620.0

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FarfetchLimitedFarfetchLimitedSupplementalMetricsSupplementalMetrics

  

20182018 20182018 FirstQuarterFirstQuarter SecondQuarterSecondQuarter ThirdQuarterThirdQuarter FourthQuarterFourthQuarter FullYearFullYear (inthousands,unlessstatedotherwise)(inthousands,unlessstatedotherwise) ConsolidatedGroup:ConsolidatedGroup: GrossMerchandiseValue(“GMV”) $ 292,692 $ 338,543 $ 309,973 $ 466,490 $ 1,407,698Revenue1 125,617 146,693 134,541 195,533 602,384FulfilmentRevenue 22,535 28,016 21,799 25,444 97,794AdjustedRevenue1 103,082 118,677 112,742 170,089 504,590In-StoreRevenue 4,021 3,170 4,090 4,314 15,595DemandGenerationExpense (19,363) (21,895) (22,103) (33,934) (97,295)TechnologyExpense (13,896) (17,135) (19,034) (18,159) (68,224)ShareBasedPayments (6,567) (5,956) (38,475) (2,821) (53,819)DepreciationandAmortization (4,875) (5,463) (6,014) (7,185) (23,537)GeneralandAdministrative (51,571) (62,080) (58,561) (56,679) (228,891)AdjustedEBITDA (23,657) (25,417) (32,311) (14,575) (95,960)AdjustedEBITDAMargin (22.9%) (21.4%) (28.7%) (8.6%) (19.0%)Platform:Platform: PlatformGMV $ 288,671 $ 335,373 $ 305,884 $ 462,176 $ 1,392,104PlatformServicesRevenue1 99,061 115,507 108,652 165,775 488,995PlatformGrossProfit 59,365 74,222 65,487 92,632 291,706PlatformOrderContribution 40,002 52,327 43,384 58,698 194,411PlatformOrderContributionMargin1 40.4% 45.3% 39.9% 35.4% 39.8%Farfetch Marketplace:Farfetch Marketplace: ActiveConsumers 1,017.8 1,118.0 1,216.8 1,353.4 1,353.4NumberofOrders 578.3 727.0 662.5 945.2 2,913.0AverageOrderValue(actual) $ 647.1 $ 602.4 $ 584.6 $ 637.3 $ 618.6

 1See“Consolidatedstatementofoperationsclassification”belowforanexplanationregardingchangestothepreviouslyreportedmetricsthefirstthreequartersof2018.

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ForwardLookingStatementsForwardLookingStatements Thisreleasecontainsforward-lookingstatementswithinthemeaningofthePrivateSecuritiesLitigationReformActof1995.Allstatementscontainedinthisreleasethatdonotrelatetomattersofhistoricalfactshouldbeconsideredforward-lookingstatements,including,withoutlimitation,statementsregardingthesuccessofourexpansionintotheChinaMarketandourexpectedfinancialperformanceandoperationalperformanceforthefirstquarterof2019andfullyear2019,aswellasstatementsthatincludethewords“expect,”“intend,”“plan,”“believe,”“project,”“forecast,”“estimate,”“may,”“should,”“anticipate”andsimilarstatementsofafutureorforward-lookingnature.Theseforward-lookingstatementsarebasedonmanagement’scurrentexpectations.Thesestatementsareneitherpromisesnorguarantees,butinvolveknownandunknownrisks,uncertaintiesandotherimportantfactorsthatmaycauseactualresults,performanceorachievementstobemateriallydifferentfromanyfutureresults,performanceorachievementsexpressedorimpliedbytheforward-lookingstatements,including,butnotlimitedto:purchasersofluxuryproductsmaynotchoosetoshoponlineinsufficientnumbers;ourabilitytogeneratesufficientrevenuetobeprofitableortogeneratepositivecashflowonasustainedbasis;thevolatilityanddifficultyinpredictingtheluxuryfashionindustry;ourrelianceonalimitednumberofretailersandbrandsforthesupplyofproductsonourMarketplace;ourrelianceonretailersandbrandstoanticipate,identifyandrespondquicklytonewandchangingfashiontrends,consumerpreferencesandotherfactors;ourrelianceonretailersandbrandstomakeproductsavailabletoourconsumersonourMarketplaceandtosettheirownpricesforsuchproducts;fluctuationinforeignexchangerate;ourrelianceoninformationtechnologiesandourabilitytoadapttotechnologicaldevelopments;ourabilitytoacquireorretainconsumersandtopromoteandsustaintheFarfetchbrand;ourabilityortheabilityofthirdpartiestoprotectoursites,networksandsystemsagainstsecuritybreaches,orotherwisetoprotectourconfidentialinformation;ourabilitytosuccessfullylaunchandmonetizenewandinnovativetechnology;ourdependenceonhighlyskilledpersonnel,includingourseniormanagement,datascientistsandtechnologyprofessionals,andourabilitytohire,retainandmotivatequalifiedpersonnel;JoséNeves,ourchiefexecutiveofficer,hasconsiderableinfluenceoverimportantcorporatemattersduetohisownershipofus,andourdual-classvotingstructurewilllimityourabilitytoinfluencecorporatematters,includingachangeofcontrol;andtheotherimportantfactorsdiscussedunderthecaption“RiskFactors”inourfinalprospectusunderRule424(b)filedwiththeU.S.SecuritiesandExchangeCommission(“SEC”)onSeptember24,2018inconnectionwithourinitialpublicofferingassuchfactorsmaybeupdatedfromtimetotimeinourotherfilingswiththeSEC,whichareaccessibleontheSEC’swebsiteatwww.sec.gov.Inaddition,weoperateinaverycompetitiveandrapidlychangingenvironment.Newrisksemergefromtimetotime.Itisnotpossibleforourmanagementtopredictallrisks,norcanweassesstheimpactofallfactorsonitsbusinessortheextenttowhichanyfactor,orcombinationoffactors,maycauseactualresultstodiffermateriallyfromthosecontainedinanyforward-lookingstatementsthatwemaymake.Inlightoftheserisks,uncertaintiesandassumptions,theforward-lookingeventsandcircumstancesdiscussedinthisreleaseareinherentlyuncertainandmaynotoccur,andactualresultscoulddiffermateriallyandadverselyfromthoseanticipatedorimpliedintheforward-lookingstatements.Accordingly,youshouldnotrelyuponforward-lookingstatementsaspredictionsoffutureevents.Inaddition,theforward-lookingstatementsmadeinthisreleaserelateonlytoeventsorinformationasofthedateonwhichthestatementsaremadeinthisrelease.Exceptasrequiredbylaw,weundertakenoobligationtoupdateorrevisepubliclyanyforward-lookingstatements,whetherasaresultofnewinformation,futureeventsorotherwise,afterthedateonwhichthestatementsaremadeortoreflecttheoccurrenceofunanticipatedevents. 

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  ConsolidatedStatementofOperationsReclassificationConsolidatedStatementofOperationsReclassification Wehaverevisedpreviouslyreportedrevenuesandcostofrevenuesforeachofthefirstthreequartersof2018toreflectcertainsalesoriginallyreportedonathirdpartybasis(i.e.netrevenuepresentation),asbeingonafirstpartybasis(i.e.grossrevenuepresentation).Theserevisionshadnoimpactongrossprofitorlossaftertaxinthoseperiods,andhadnoimpactonanyofourunauditedcondensedconsolidatedstatementsoffinancialposition,changesinequityorcashflowsduring2018.TheGrouphasdeterminedthattheserevisionsareimmaterialtothepreviouslyreportedfinancialinformation,andthereisnoimpactonanypreviouslyissuedannualfinancialstatements.Therewasnoimpacttootherpriorperiods. Non-IFRSandOtherFinancialandOperatingMetricsNon-IFRSandOtherFinancialandOperatingMetrics

ThisreleaseincludescertainfinancialmeasuresandmetricsnotbasedonIFRS,includingAdjustedEBITDA,AdjustedEBITDAMargin,AdjustedRevenue,PlatformServicesRevenue,PlatformGrossProfit,PlatformOrderContribution,andPlatformOrderContributionMargin,aswellasoperatingmetrics,includingGMV,PlatformGMV,ActiveConsumers,NumberofOrdersandAverageOrderValue. ManagementusesAdjustedEBITDA,AdjustedEBITDAMargin,AdjustedRevenue,PlatformServicesRevenue,PlatformGrossProfit,PlatformOrderContribution,andPlatformOrderContributionMargin  • asmeasurementsofoperatingperformancebecausetheyassistusincomparingouroperatingperformanceonaconsistentbasis,

astheyremovetheimpactofitemsnotdirectlyresultingfromourcoreoperations;  • forplanningpurposes,includingthepreparationofourinternalannualoperatingbudgetandfinancialprojections;  • toevaluatetheperformanceandeffectivenessofourstrategicinitiatives;and  • toevaluateourcapacitytofundcapitalexpendituresandexpandourbusiness. AdjustedEBITDA,AdjustedEBITDAMargin,AdjustedRevenue,PlatformServicesRevenue,PlatformGrossProfit,PlatformOrderContributionandPlatformOrderContributionMarginmaynotbecomparabletosimilarmeasuresdisclosedbyothercompanies,becausenotallcompaniesandanalystscalculatethesemeasuresinthesamemanner.WepresentAdjustedEBITDA,AdjustedEBITDAMargin,AdjustedRevenue,PlatformServicesRevenue,PlatformGrossProfit,PlatformOrderContributionandPlatformOrderContributionMarginbecauseweconsiderthemtobeimportantsupplementalmeasuresofourperformance,andwebelievetheyarefrequentlyusedbysecuritiesanalysts,investorsandotherinterestedpartiesintheevaluationofcompanies.Managementbelievesthatinvestors’understandingofourperformanceisenhancedbyincludingthesenon-IFRSfinancialmeasuresasareasonablebasisforcomparingourongoingresultsofoperations.Manyinvestorsareinterestedinunderstandingtheperformanceofourbusinessbycomparingourresultsfromongoingoperationsperiodoverperiodandwouldordinarilyaddbacknon-cashexpensessuchasdepreciation,amortizationanditemsthatarenotpartofnormalday-to-dayoperationsofourbusiness.Byprovidingthesenon-IFRSfinancialmeasures,togetherwithreconciliationstoIFRS,webelieveweareenhancinginvestors’understandingofourbusinessandourresultsofoperations,aswellasassistinginvestorsinevaluatinghowwellweareexecutingourstrategicinitiatives. Itemsexcludedfromthesenon-IFRSmeasuresaresignificantcomponentsinunderstandingandassessingfinancialperformance.AdjustedEBITDA,AdjustedEBITDAMargin,AdjustedRevenueandPlatformServicesRevenuehavelimitationsasanalyticaltoolsandshouldnotbeconsideredin

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isolation,orasanalternativeto,orasubstituteforlossaftertax,revenueorotherfinancialstatementdatapresentedinourconsolidatedfinancialstatementsasindicatorsoffinancialperformance.Someofthelimitationsare:  • suchmeasuresdonotreflectrevenuerelatedtofulfilment,whichisnecessarytotheoperationofourbusiness;  • suchmeasuresdonotreflectourexpenditures,orfuturerequirementsforcapitalexpendituresorcontractualcommitments;  • suchmeasuresdonotreflectchangesinourworkingcapitalneeds;  • suchmeasuresdonotreflectoursharebasedpayments,incometax(credit)/expenseortheamountsnecessarytopayourtaxes;  • althoughdepreciationandamortizationareeliminatedinthecalculationofAdjustedEBITDA,theassetsbeingdepreciatedand

amortizedwilloftenhavetobereplacedinthefutureandsuchmeasuresdonotreflectanycostsforsuchreplacements;and  • othercompaniesmaycalculatesuchmeasuresdifferentlythanwedo,limitingtheirusefulnessascomparativemeasures. Duetotheselimitations,AdjustedEBITDA,AdjustedEBITDAMargin,AdjustedRevenueandPlatformServicesRevenueshouldnotbeconsideredasmeasuresofdiscretionarycashavailabletoustoinvestinthegrowthofourbusinessandareinadditionto,notasubstitutefororsuperiorto,measuresoffinancialperformancepreparedinaccordancewithIFRS.Inaddition,thenon-IFRSfinancialmeasuresweusemaydifferfromthenon-IFRSfinancialmeasuresusedbyothercompanies,andarenotintendedtobeconsideredinisolationorasasubstituteforthefinancialinformationpreparedandpresentedinaccordancewithIFRS.Furthermore,notallcompaniesoranalystsmaycalculatesimilarlytitledmeasuresinthesamemanner.WecompensativefortheselimitationbyrelyingprimarilyonourIFRSresultsandusingthesenon-IFRSmeasuresonlyassupplementalmeasures. PlatformGrossProfit,PlatformOrderContributionandPlatformOrderContributionMarginarenotmeasurementsofourfinancialperformanceunderIFRSanddonotpurporttobealternativestogrossprofitorlossaftertaxderivedinaccordancewithIFRS.WebelievethatPlatformGrossProfit,PlatformOrderContributionandPlatformOrderContributionMarginareusefulmeasuresinevaluatingouroperatingperformancebecausetheytakeintoaccountdemandgenerationexpenseandareusedbymanagementtoanalyzetheoperatingperformanceofourplatformfortheperiodspresented.WealsobelievethatPlatformGrossProfit,PlatformOrderContributionandPlatformOrderContributionMarginareusefulmeasuresinevaluatingouroperatingperformancewithinourindustrybecausetheypermittheevaluationofourplatformproductivity,efficiencyandperformance. FarfetchreportsunderInternationalFinancialReportingStandards(“IFRS”).Farfetchprovidesearningsguidanceonanon-IFRSbasisanddoesnotprovideearningsguidanceonanIFRSbasis.AreconciliationoftheCompany’sAdjustedEBITDAguidancetothemostdirectlycomparableIFRSfinancialmeasurecannotbeprovidedwithoutunreasonableeffortsandisnotprovidedhereinbecauseoftheinherentdifficultyinforecastingandquantifyingcertainamountsthatarenecessaryforsuchreconciliations,includingadjustmentsthataremadeforfuturechangesinthefairvalueofcash-settledsharebasedpaymentliabilities;foreignexchangegains/(losses)andtheotheradjustmentsreflectedinourreconciliationofhistoricalnon-IFRSfinancialmeasures,theamountsofwhich,couldbematerial. Reconciliationsofthesenon-IFRSmeasurestothemostdirectlycomparableIFRSmeasureareincludedintheaccompanyingtables. 

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ThefollowingtablereconcilesAdjustedEBITDAtothemostdirectlycomparableIFRSfinancialperformancemeasure,whichislossaftertax: (in $ thousands, except as otherwise noted)    20172017 20172017

FirstFirst

QuarterQuarter SecondSecondQuarterQuarter

ThirdThirdQuarterQuarter

FourthFourthQuarterQuarter FullyearFullyear

Lossaftertax $ (9,333) $ (19,947) $ (28,179) $ (54,816) $ (112,275)Netfinancecosts/(income) (1,085) (605) (839) 20,171 17,642Incometaxexpense/(credit) 152 (581) 225 374 170Depreciationandamortization 2,313 2,706 2,932 3,029 10,980Sharebasedpayments(a) 3,770 4,752 5,249 7,715 21,486Otheritems(b) - 3,823 - 126 3,949Shareofresultsofassociates (7) (8) (8) (8) (31)AdjustedEBITDAAdjustedEBITDA $$ (4,190(4,190)) $$ (9,860(9,860)) $$ (20,620(20,620)) $$ (23,409(23,409)) $$ (58,079(58,079)) (in $ thousands, except as otherwise noted)            20182018 20182018

FirstFirst

QuarterQuarter SecondSecondQuarterQuarter

ThirdThirdQuarterQuarter

FourthFourthQuarterQuarter FullyearFullyear

Lossaftertax $ (50,727) $ (17,681) $ (77,255) $ (9,912) $ (155,575)Netfinancecosts/(income) 15,101 (19,319) (733) (14,915) (19,866)Incometaxexpense/(credit) 527 187 1,183 261 2,158Depreciationandamortization 4,875 5,463 6,014 7,185 23,537Sharebasedpayments(a) 6,567 5,956 38,475 2,821 53,819Otheritems - - - - - Shareofresultsofassociates - (23) 5 (15) (33)AdjustedEBITDAAdjustedEBITDA $$ (23,657(23,657)) $$ (25,417(25,417)) $$ (32,311(32,311)) $$ (14,575(14,575)) $$ (95,960(95,960)) (a) Representssharebasedpaymentexpense.(b) Representsotheritems,whichareoutsidethenormalscopeofourordinaryactivitiesornon-cash,includingfairvalueremeasurement

ofcontingentconsiderationof$3.3millioninsecondquarter2017andlegalfeesdirectlyrelatedtoacquisitionsof$0.1millioninfourthquarter2017,allofwhichareincludedwithinthegeneralandadministrativecomponentofselling,generalandadministrativeexpenses.Therewerenoothersuchitemsin2018.

 

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ThefollowingtablereconcilesAdjustedRevenueandPlatformServicesRevenuetothemostdirectlycomparableIFRSfinancialperformancemeasure,whichisrevenue: (in $ thousands, except as otherwise noted)    20172017 20172017

FirstFirstQuarterQuarter

SecondSecondQuarterQuarter

ThirdThirdQuarterQuarter

FourthFourthQuarterQuarter FullyearFullyear

Revenue $ 79,425 $ 93,146 $ 86,913 $ 126,482 $ 385,966Less:PlatformFulfilmentRevenue (16,128) (17,632) (16,426) (23,996) (74,182)AdjustedRevenue 63,297 75,514 70,487 102,486 311,784Less:In-StoreRevenue (3,715) (3,616) (4,339) (3,764) (15,434)PlatformServicesPlatformServicesRevenueRevenue $$ 59,58259,582 $$ 71,89871,898 $$ 66,14866,148 $$ 98,72298,722 $$ 296,350296,350

  (in $ thousands, except as otherwise noted)            20182018 20182018

FirstFirstQuarterQuarter

SecondSecondQuarterQuarter

ThirdThirdQuarterQuarter

FourthFourthQuarterQuarter FullyearFullyear

Revenue $ 125,617 $ 146,693 $ 134,541 $ 195,533 $ 602,384Less:PlatformFulfilmentRevenue (22,535) (28,016) (21,799) (25,444) (97,794)AdjustedRevenue 103,082 118,677 112,742 170,089 504,590Less:In-StoreRevenue (4,021) (3,170) (4,090) (4,314) (15,595)PlatformServicesPlatformServicesRevenueRevenue $$ 99,06199,061 $$ 115,507115,507 $$ 108,652108,652 $$ 165,775165,775 $$ 488,995488,995

   ThefollowingtablereconcilesPlatformGrossProfitandPlatformOrderContributiontothemostdirectlycomparableIFRSfinancialperformancemeasure,whichisgrossprofit: (in $ thousands, except as otherwise noted)    20172017 20172017

FirstFirst

QuarterQuarter SecondSecondQuarterQuarter

ThirdThirdQuarterQuarter

FourthFourthQuarterQuarter FullyearFullyear

Grossprofit $ 42,854 $ 51,494 $ 45,689 $ 64,729 $ 204,766Less:In-StoreGrossProfit(a) (2,095) (1,759) (2,431) (1,900) (8,185)PlatformGrossProfit 40,759 49,735 43,258 62,829 196,581Less:Demandgenerationexpense (12,429) (16,694) (16,824) (23,255) (69,202)PlatformOrderPlatformOrderContributionContribution $$ 28,33028,330 $$ 33,04133,041 $$ 26,43426,434 $$ 39,57439,574 $$ 127,379127,379

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 (in $ thousands, except as otherwise noted)            20182018 20182018

FirstFirst

QuarterQuarter SecondSecondQuarterQuarter

ThirdThirdQuarterQuarter

FourthFourthQuarterQuarter FullyearFullyear

Grossprofit $ 61,173 $ 75,693 $ 67,387 $ 94,197 $ 298,450Less:In-StoreGrossProfit(a) (1,808) (1,471) (1,900) (1,565) (6,744)PlatformGrossProfit 59,365 74,222 65,487 92,632 291,706Less:Demandgenerationexpense (19,363) (21,895) (22,103) (33,934) (97,295)PlatformOrderPlatformOrderContributionContribution $$ 40,00240,002 $$ 52,32752,327 $$ 43,38443,384 $$ 58,69858,698 $$ 194,411194,411

 (a) In-StoreGrossProfitisIn-StoreRevenuelessthedirectcostofgoodssoldrelatingtoIn-StoreRevenue “ActiveConsumers”meansactiveconsumersontheFarfetchMarketplace.AconsumerisdeemedtobeactiveiftheymadeapurchaseontheFarfetchMarketplacewithinthelast12-monthperiod,irrespectiveofcancelationsorreturns.ThenumberofActiveConsumersisanindicatorofourabilitytoattractandretainanincreasinglylargeconsumerbasetoourplatformandofourabilitytoconvertplatformvisitsintosaleorders. “AdjustedEBITDA”meanslossaftertaxesbeforenetfinancecosts/(income),incometax(credit)/expenseanddepreciationandamortization,furtheradjustedforsharebasedcompensationexpense,otheritems(representsitemsoutsidethenormalscopeofourordinaryactivities)andshareofresultsofassociates.AdjustedEBITDAprovidesabasisforcomparisonofourbusinessoperationsbetweencurrent,pastandfutureperiodsbyexcludingitemsthatwedonotbelieveareindicativeofourcoreoperatingperformance.AdjustedEBITDAmaynotbecomparabletoothersimilarlytitledmetricsofothers.“AdjustedEBITDAMargin”meansAdjustedEBITDAcalculatedasapercentageofAdjustedRevenue.“AdjustedRevenue”meansrevenuelessPlatformFulfilmentRevenue. “AverageOrderValue”(“AOV”)meanstheaveragevalueofallordersplacedontheFarfetchMarketplaceexcludingvalueaddedtaxes. “GrossMerchandiseValue”(“GMV”)meansthetotaldollarvalueofordersprocessed.GMVacrossourplatformisinclusiveofproductvalue,shippingandduty.Itisnetofreturns,valueaddedtaxesandcancellations.GMVdoesnotrepresentrevenueearnedbyus,althoughGMVandrevenuearecorrelated. “In-StoreRevenue”meansrevenuegeneratedinourBrownsretailstores. “NumberofOrders”meansthetotalnumberofconsumerordersplacedontheFarfetchMarketplace,grossofreturnsandnetofcancellations,inaparticularperiod.Anorderiscountedonthedaytheconsumerplacestheorder.TheNumberofOrdersrepresentsanindicatorofourabilitytogeneratesalesopportunitiesforluxurysellersthroughourMarketplace.AnalyzedinthecontextofActiveConsumers,theNumberofOrdersprovidesanindicatorofourabilitytoattractrecurringpurchasesonourplatformandalso,theeffectivenessofourtargetedadvertising.

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 “PlatformFulfilmentRevenue”meansrevenuefromshippingandcustomsclearingservicesthatweprovidetoourconsumers,netofconsumerpromotionalincentives,suchasfreeshippingandpromotionalcodes. “PlatformGMV”meansGMVexcludingIn-StoreRevenue. “PlatformGrossProfit”meansgrossprofitexcludingIn-StoreGrossProfit. “PlatformOrderContribution”meansgrossprofitafterdeductingdemandgenerationexpense,whichincludesfeesthatwepayforourvariousmarketingchannels.PlatformOrderContributionprovidesanindicatorofourabilitytoextractconsumervaluefromourdemandgenerationexpense,includingthecostsofretainingexistingconsumersandourabilitytoacquirenewconsumers. “PlatformOrderContributionMargin”meansPlatformOrderContributioncalculatedasapercentageofPlatformServicesRevenue. “PlatformServicesRevenue”meansAdjustedRevenuelessIn-StoreRevenue.PlatformServicesRevenueisdrivenbyourPlatformGMV,includingrevenuefromfirst-partysales,andcommissionfromthird-partysales.Therevenuerealizedfromfirst-partysalesisequaltotheGMVofsuchsalesbecauseweactasprincipalinthesetransactions,andthusrelatedsalesarenotcommission-based.PlatformServicesRevenuewasalsoreferredtoasAdjustedPlatformRevenueinpreviousfilingswiththeSEC. “Third-PartyTakeRate”meansPlatformServicesRevenueexcludingrevenuefromfirst-partysales,asapercentageofGMVexcludingGMVfromfirst-partysalesandPlatformFulfilmentRevenue.Revenuefromfirst-partysales,whichisequaltoGMVfromfirst-partysales,meansrevenuederivedfromsalesonourplatformofinventorypurchasedbyus. Certainfiguresinthereleasemaynotrecalculateexactlyduetorounding.Thisisbecausepercentagesand/orfigurescontainedhereinarecalculatedbasedonactualnumbersandnottheroundednumberspresented. InvestorRelationsContact:InvestorRelationsContact:AliceRyderVPInvestorRelationsIR@farfetch.com MediaContacts:MediaContacts:SusannahClarkVPCommunications,Globalsusannah.clark@farfetch.com+447788405224 BrunswickGroupfarfetch@brunswickgroup.comUS:+1(212)3333810UK:+44(0)2074045959 

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AboutFarfetchAboutFarfetch FarfetchLimitedistheleadingglobaltechnologyplatformfortheluxuryfashionindustry.Foundedin2007byJoséNevesfortheloveoffashion,andlaunchedin2008,Farfetchbeganasane-commercemarketplaceforluxuryboutiquesaroundtheworld.TodaytheFarfetch.comMarketplaceconnectscustomersinover190countrieswithitemsfrommorethan50countriesandover1,000oftheworld’sbestbrands,boutiquesanddepartmentstores,deliveringatrulyuniqueshoppingexperienceandaccesstothemostextensiveselectionofluxuryonasingleplatform.Throughitsbusinessunits,whichalsoincludeStoreofTheFuture,FarfetchBlack&WhiteSolutions,Browns,andStadiumGoods,Farfetchcontinuestoinvestininnovationanddevelopkeytechnologies,businesssolutions,andservicesfortheluxuryfashionindustry. Formoreinformation,pleasevisitwww.farfetch.com. 

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