Farfetch (NYSE:FTCH) Gross Profit

: $1,023 Mil (TTM As of Dec. 2022)

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Farfetch's gross profit for the three months ended in Dec. 2022 was $258 Mil. Farfetch's gross profit for the trailing twelve months (TTM) ended in Dec. 2022 was $1,023 Mil.

Gross Margin % is calculated as gross profit divided by its revenue. Farfetch's gross profit for the three months ended in Dec. 2022 was $258 Mil. Farfetch's Revenue for the three months ended in Dec. 2022 was $629 Mil. Therefore, Farfetch's Gross Margin % for the quarter that ended in Dec. 2022 was 41.07%.

Farfetch had a gross margin of 41.07% for the quarter that ended in Dec. 2022 => Durable competitive advantage

During the past 8 years, the highest Gross Margin % of Farfetch was 53.05%. The lowest was 44.17%. And the median was 47.17%.

Warning Sign:

Farfetch Ltd gross margin has been in long-term decline. The average rate of decline per year is -3.3%.

Farfetch Gross Profit Historical Data

The historical data trend for Farfetch's Gross Profit can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

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Farfetch Annual Data

Trend

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Gross Profit

298.45

459.85

770.93

1,016.51

1,023.18

Farfetch Quarterly Data
	Mar18	Jun18	Sep18	Dec18	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22
Gross Profit																313.38	230.52	267.67	266.57	258.42

Competitive Comparison

For the Internet Retail subindustry, Farfetch's Gross Profit, along with its competitors' market caps and Gross Profit data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Annual Data Quarterly Data

Farfetch Gross Profit Distribution

For the Retail - Cyclical industry and Consumer Cyclical sector, Farfetch's Gross Profit distribution charts can be found below:

* The bar in red indicates where Farfetch's Gross Profit falls in comparison to its industry or sector. The grey bar indicates the Gross Profit's extreme value range as defined by GuruFocus.

Farfetch Gross Profit Calculation

Gross Profit is the different between the sale prices and the cost of buying or producing the goods.

Farfetch's Gross Profit for the fiscal year that ended in Dec. 2022 is calculated as

Gross Profit (A: Dec. 2022 )	=	Revenue	-	Cost of Goods Sold
	=	2316.68	-	1293.505
	=	1,023

Farfetch's Gross Profit for the quarter that ended in Dec. 2022 is calculated as

Gross Profit (Q: Dec. 2022 )	=	Revenue	-	Cost of Goods Sold
	=	629.173	-	370.753
	=	258

Gross Profit for the trailing twelve months (TTM) ended in Dec. 2022 adds up the quarterly data reported by the company within the most recent 12 months, which was $1,023 Mil.

Gross Profit is the numerator in the calculation of Gross Margin.

Farfetch's Gross Margin % for the quarter that ended in Dec. 2022 is calculated as

Gross Margin % (Q: Dec. 2022 )	=	Gross Profit (Q: Dec. 2022 )	/	Revenue (Q: Dec. 2022 )
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	258	/	629.173
	=	41.07 %

A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.

Farfetch (NYSE:FTCH) Gross Profit Explanation

Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.

Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %

1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key

Farfetch had a gross margin of 41.07% for the quarter that ended in Dec. 2022 => Durable competitive advantage

Farfetch Gross Profit Related Terms

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Farfetch (NYSE:FTCH) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Retail - Cyclical » Farfetch Ltd (NYSE:FTCH) » Definitions » Gross Profit

Comparable Companies

Traded in Other Exchanges

FTCH:Mexico F1F:Germany

Address

The Bower, 211 Old Street, London, GBR, EC1V 9NR

Website

https://www.farfetchinvestors.com

Farfetch is an online platform connecting sellers and buyers of personal luxury goods. It was founded in 2008. The company partners with over 1,000 luxury goods sellers to offer their inventory on the platform. When making the retailers' stock available to almost a million active customers, the company charges a cut of around 30% (third-party take rate). The company operates digital marketplace platform Farfetch, Browns stores and acquired branded company New Guard Group.