Farfetch Ltd (NYSE:FTCH) stock plummets 11.74% (As on Nov 19, 11:20:33 AM UTC-4, Source: Google Finance) after the company posted mixed result for the third quarter of FY 21. Digital Platform GMV growth on a two-year basis accelerated sequentially from 89% in Q2 2021 to 97% in Q3 2021, led by key luxury markets including the United States, Mainland China, United Kingdom, Middle East, Germany and Russia, which more than doubled in two years. Third-party transactions generated 82% of Digital Platform GMV at a take rate of 30.1% in third quarter 2021. First-party transactions grew 26% year-over-year, supported by First-Party Original which generated 4% of Digital Platform GMV in third quarter 2021.

Moreover, the company had launched sustainable, digital-only brand There Was One, available exclusively on the Farfetch Marketplace. The brand features conscious and certified materials across collections, and is delivered in minimal packaging, which is recyclable and compostable, with limited drops to minimize overproduction. New Guards’ portfolio continued to focus on direct-to-consumer channels, which contributed to Off-White and Palm Angels’ positions within the top 10 brands on the Farfetch Marketplace, while creating culturally relevant collections. Off-White released Off-White x Nike Dunk Low ‘The 50’ Collection and launched ‘I Support All Forms of Love’ initiative with Trinice McNally, with all proceeds from the collection being donated to the Black LGBTQIA+ Migrant Project. Palm Angels opened store in Miami, its first directly operated store, and released first-ever beauty collaboration, with launch of fragrance collection in with 19-69.

FTCH in the third quarter of FY 21 has reported the adjusted loss per share of 14 cents, beating the analysts’ estimates for the adjusted loss per share of 16 cents. The company had reported the adjusted revenue growth of 33.1 percent to $582.6 million in the third quarter of FY 21, missing the analysts’ estimates for revenue of $591.3 million. The increase was primarily driven by 26.5% growth in Digital Platform Revenue to $397.1 million and year-over-year growth in Brand Platform Revenue of 47.2% to $165.3 million. In-Store Revenue increased by 76.6% to $20.2 million due to the same factors driving In-Store GMV growth. Gross profit increased by 20.6%, year-over-year, slower than revenue growth, to $252.2 million in third quarter 2021. Gross profit margin decreased 450 bps year-over-year to 43.3% from 47.8%, due to the softening of gross profit growth in both Digital Platform and Brand Platform.

For Q4, the company has forecast adjusted earnings before interest, tax, depreciation, and amortization of about $40 million, bringing the full-year Pro-forma EBITDA to $5 million.