By Dhirendra Tripathi
Investing.com – Farfetch stock (NYSE:FTCH) soared 38% Friday after the company posted a much narrower quarterly loss than estimated, benefiting from a surge in luxury shopping as restrictions eased and people looked to indulge.
It was also the first full year of positive earnings before interest, tax, depreciation and amortization on adjusted basis for the online luxury retailer.
The recovery helped recoup part of the losses in the stock, which is down over 77% in the past year.
The online marketplace for luxury boutiques posted a quarterly loss of 3 cents per share when analysts estimated it to report 25 cents in loss per share.
Farfetch said it ended 2021 with a higher market share.
Quarterly gross merchandise value jumped 22% year-on-year to $1.28 billion. Digital platform GMV was $1.14 billion in the quarter. The company expects this to grow 28% to 32% in the year.
GMV defines the total value of goods and services sold on an online platform.
Third-party transactions generated 85% of digital platform GMV.
Adjusted revenue rose 23% to $571 million in the quarter.
The company also grew its media solutions business and partnered with more brands to attract more visitors to its online platform. This included Balmain X Netflix (NASDAQ:NFLX) collaboration coinciding with the release of the movie ‘The Harder They Fall’.
The company is guiding for an adjusted EBITDA margin of 1% to 2% for the year.