LONDON – Farfetch, one of fashion tech’s highest-profile companies, saw global revenue grow at breakneck speed in 2016, while losses widened, according to its latest filing at Companies House in London.
Farfetch, one of the U.K.’s first retail unicorns which is now valued in excess of $1 billion, saw after-tax losses widen to 34 million pounds from 28.7 million pounds on revenues that grew 74 percent to 151.3 million pounds.
In the 12 months to December 31, 2016, the company’s operating loss grew to 33.5 million pounds from 26.5 million pounds.
The results pertain to Farfetch.com, the sales platform for luxury boutiques worldwide, and part of the Farfetch Group.
In the statement, the company said Farfetch is showing “strong growth in both demand for, and supply of, products through the Farfetch platform. The company is confident in its future outlook, and well placed to manage its business risks successfully despite the current uncertain economic outlook.”
On Tuesday, after the results were posted on Companies House, the official register of U.K. businesses, founder and chief executive officer Jose Neves called Farfetch “a fast-growing company at an exciting stage in its journey, with over 21 million visits to our websites every month and relationships with over 500 partner boutiques and 200 brands.”
He said “the trajectory of rapid growth and substantial investment continued in 2016, and we are pleased to have seen 81 percent growth in gross merchandise value, as well as strong growth of 74 percent, in revenues.”
He said the program of investment has been designed to support the company’s ambitious growth plans and, over the year, investments were focused on technology, as well as customer acquisition and hiring. “We have very strong foundations in place and will continue to invest and grow our business as we build the definitive technology platform for the luxury industry,” he said.
The company continued on its expansion and investment trajectory in 2017, acquiring Style.com from Conde Nast, naming Natalie Masssenet as non-executive co-chairman and adviser, setting a share option scheme for employees and launching its Store of the Future concept at its first OS event in London.
It also scored a $397 million investment from JD.com, to fuel growth in the Chinese market. JD joined investors Temasek, IDG Capital Partners and Eurazeo and Vitruvian Partners.
Despite persistent rumors, the company has said an IPO is not on the cards at the moment. “We’re concentrating on growing the company right now,” said a spokeswoman on Tuesday.
Separately, the Farfetch Group-owned retailer Browns also filed its results on Companies House.
The retailer, which Farfetch is using as a laboratory to experiment with online and offline retail, saw its revenue more than double to 36.9 million pounds, while losses widened to 6.4 million pounds from 369,330 pounds in the 17 months to December 31, 2016.
The Browns statement said the company is showing “strong growth” and has continued to invest in omni-channel technology and in brownsfashion.com, which has been a key driver of sales. “The company is confident in its future outlook,” the statement said.
Last month, Browns opened its first Nomad concept store in east London and closed its Sloane Streeet shop. It is also set to refurbish its South Molton Street flagship and will continue to build its online presence.