In the fourth quarter of 2022, the company reported that GMV dropped by US$149.2 million to US$1.14 billion, a decline of 11.6% year-on-year. Excluding the impact of changes in foreign exchange rates, GMV would have decreased by 5.3%, Farfetch reported.

Digital Platform GMV dropped by US$133.7 million to US$1.01 billion, representing a year-over-year decline of 11.7%. Excluding the impact of changes in foreign exchange rates, Digital Platform GMV would have decreased by 6% year-over-year.

GMV for the full year was down by 4% to US$4.06 billion, while Digital Platform GMV fell by 5% to US$3.49 billion.

Meanwhile, the company reported that revenue decreased by US$36.5 million year-on-year to US$629.2 million in the fourth quarter of 2022, a decline of 5.5%. Digital Platform Services Revenue was down by 2.1%, with the decline driven by third-party revenue. First-party revenue was up by 11.5%.

For the year, Farfetch achieved revenue of US$2.32 billion, an increase of 2.66% thanks to growth earlier in the year.

The company’s result after tax for the fourth quarter was down by US$273.6 million year-on-year to a loss of US$176.6 million in the fourth quarter. For the year, the result was down by 76.6% to US$344.86 million.

Looking forward to the full 2023 fiscal year results, Farfetch is expecting GMV of around US$4.9 million, Digital Platform GMV of approximately US$4.2 billion and an adjusted EBITDA margin of 1-3%.

Elliot Jordan, CFO of Farfetch, said: “I’m pleased to report our fourth quarter 2022 results which demonstrate that we continue to deliver solid underlying performance, are managing to navigate unprecedented external factors and are clearly focused on the actions needed to return the business to profitability and generating positive free cash flow in 2023.

“Our long-term trajectory has been one of strong GMV growth, operating cost leverage and improving full-year adjusted EBITDA margins. We expect to return to this position by the end of 2023, which will be a great year for Farfetch.”