What: Farfetch reported quarterly earnings that demonstrate strength and growth for the luxury e-retailer despite market uncertainty.

Why it is important: Despite industry-wide headwinds, inflation and market uncertainty, Farfetch has revealed quarterly earnings that showed an impressive three months of growth.

Following the announcement of its purchase of a large portion of YNAP’s stake, Farfetch’s stock jumped 21.05% when the market closed on Wednesday. It closed up at 0.32% (9.54 USD per share) on Thursday; and, would jump another 18% during after-hours trading due to the most recent quarterly reports showing the luxury platform’s boosted gains on both top and bottom lines.

High-value items like fine jewellery, watches, handbags and limited-edition sneakers were shown to have been performing well as the firm even beat out its record 2.4 million USD watch sale with an even higher sale during the quarter.

According to founder Jose Neves, high-net-worth families and earners will not swap their designer fashion purchases for fast fashion items simply due to inflation. The pandemic demonstrated that even when the economy was uncertain and people were not leaving their homes, the luxury e-retailer’s fashion sales were growing.

While the platform lost around 50,000 shoppers when it ceased its operations in Russia, Thursday’s reports also revealed that the platform acquired more than 500,000 new customers during the quarter. The restrictions in China also posed problems, yet full-priced selling grew 20% year-over-year. Gross profits grew to nearly 268 million USD as a result, up from 230 million USD the same time last year.

In addition, total revenues for the three-month period ending June 30 increased nearly 11% to more than 579 million USD, up from approximately 523 million USD a year ago. Farfetch ended the quarter with approximately 575 million USD in cash and cash equivalents.

Shares of Farfetch are down 76.4% year-over-year, but Neves has a positive outlook for 2023 remaining bullish on medium- and long-term prospects.

Farfetch’s outlook for luxury fashion remains strong