Farfetch Limited (NYSE:FTCH) Q1 2022 Earnings Conference Call May 26, 2022 4:30 PM ET

Company Participants

Alice Ryder - Vice President, Investor Relations

José Neves - Founder, Chairman & Chief Executive Officer

Stephanie Phair - Chief Customer Officer

Elliot Jordan - Chief Financial Officer

Conference Call Participants

Doug Anmuth - JPMorgan

Stephen Ju - Credit Suisse

Oliver Chen - Cowen

Lauren Schenk - Morgan Stanley

Louise Singlehurst - Goldman Sachs

Operator

Good afternoon. My name is Christine Miller, and I will be your conference operator today. At this time, I would like to welcome everyone to the Farfetch First Quarter 2022 Results Conference Call. All lines have been placed on mute to prevent any background noise. After the speaker’s remarks, there will be a question-and-answer session. Thank you.

I’d now like to turn the call over to Alice Ryder, VP of Investor Relations. Ms. Ryder, you may begin your conference.

Alice Ryder

Hello and welcome to Farfetch’s first quarter 2022 conference call. Joining me today to discuss our results are José Neves, our Founder, Chairman and Chief Executive Officer; Elliot Jordan, our Chief Financial Officer; and Stephanie Phair, our Chief Customer Officer.

Before we begin, we would like to remind you that our discussions today will include forward-looking statements. Actual results could differ materially from those indicated in the forward-looking statements and forward-looking statements made today speak only to our expectations as of today. We undertake no obligation to publicly update or revise them. For a discussion of some of the important risk factors that could cause actual results to differ, please see the Risk Factors section of our Form 20-F filed with the SEC on March 4, 2022.

In addition, we will refer to certain financial measures not reported in accordance with IFRS on this call. You can find reconciliations of these non-IFRS financial measures to the IFRS financial measures in our earnings press release and the slide presentation, both of which are available on our website at farfetchinvestors.com.

And now, I’d like to turn the call over to José.

José Neves

Hello, everyone. Thank you for joining us today. Our underlying business remains incredibly robust, in spite of our Q1 results being impacted by significant changes in the macro and geopolitical environment since our Q4 2021 call in February.

Specifically, there are three key developments that impacted our Q1 results and outlook. One, the war in Ukraine and our suspension of operations in Russia; two, the recent COVID-19 outbreaks and related recessions in Mainland China; and three, a double-digit decline in markdown GMV as the transition of the marketplace towards being predominantly full price accelerated.