Farfetch Limited

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 20F filed with the SEC on March 4th, 2021. 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 barfetchinvestors.com. And now, I'd like to turn the call over to Jose.

Thank you, Alice, and thank you all for joining us today. I'm very pleased to report that the strong momentum we've had exiting 2020 has accelerated into 2021, with a significant boost in both digital platform and Group GMV growth. In Q1, Group GMV grew 50% year-on-year, with digital platform GMV growing 60% to exceed our previously provided guidance. Based on the continued strong performance to date, we have also upgraded our full-year 2021 outlook to expect higher digital platform GMV growth and reiterated our expectations for positive adjusted EBITDA for the year. We believe the strong momentum in our business is a reflection of the paradigm shift we have helped drive over the past year. where we have seen accelerated online adoption by luxury consumers and digitization by luxury brands and retailers. We expect this will be sustained and continue to progress, which is why we are continuing to invest behind our proposition as a digital enabler for the entire global luxury industry. As mentioned last quarter, we are focusing our 2021 strategic roadmap across five major themes of our Chapter 2 strategy. I will update you on our progress across the first three, strengthening our luxury partnerships, China, and the luxury new retail or L&R platform. And I'll let Stephanie update you on the remaining two, the Carthage brand, and unrivaled global customer experience. Starting with our luxury partnerships, we continue to build on our highly strategic relationships with our nearly 1,400 luxury brands and retailers. They are increasingly seeing FireFetch as a key partner. as evidenced by the fact that total listings on the marketplace accelerated to a record number of stock units in Q1. And they're selling faster. Q1 GMV growth for our boutiques and for our brands, each in aggregate, were both the highest since 2018. In fact, our top 20 e-concession brands enjoyed more than 150% year-on-year growth on average of high-margin direct-to-consumer sales during the quarter. As a digital enabler, we are also continuing to advance enterprise solutions to support our luxury partners. This includes our FastWedge platform solutions, or FPS services, which powers more than 50% growth on average in Q1 in the brand.com e-commerce channels of our more mature FPS clients, those who have been on FPS for at least one year. Last quarter, we also announced FPS's launch of e-concessions as a service. which enables brands to shift more of their distribution from wholesale to direct-to-consumer and allows multi-brand retailers to access a deeper and broader selection of concession supply in real-time. Following the successful launch of Burberry's e-concession on Harris.com in Q4 2020, we were delighted to further expand our e-concessions as a service for Harrods to also include Brunello, Cucinelli and Zenga. With more and more brands actively prioritizing direct-to-consumer channels, we believe our unique e-concession solution will enable this transformation, not only on the Farfetch marketplace, but also by facilitating e-concessions for the broader industry. turning to China. We remain laser focused on continuing to build on our successes in this market. Our localized operations enabled us to attract valuable Chinese customers across a broad base of channels, where we engage luxury fashion consumers with our global supply from the best brands in luxury via our app, website, and social commerce channels such as WeChat, and demonstrate our fashion authority across our content, services, and for our private clients via local stylists who engage with their clients on the latest fashion trends and provide access to exclusive products and events. This robust proposition underpins our strong performance in mainland China. which continues to grow faster than both the US, our largest market, and the overall marketplace in Q1. The fact that we have continued to deliver outsized growth in China, where consumers have had the option of shopping in physical retail stores since spring 2020, when lockdown restrictions were lifted, further highlights the appeal of our services and offerings for luxury consumers. and also demonstrates the sustained paradigm shift we have witnessed across the luxury industry. On the back of our success in building a thriving China business, we were thrilled to boost our presence in this critical market with the launch of our storefront on Pin Mo's Luxury Pavilion in March. I'd like to update you on the very early indications we're seeing from these exciting initiatives. For us, the Tmall opportunity is a multifaceted partnership, with two key objectives being, one, boosting the Farfetch brand awareness in China by reaching a much wider audience, and two, driving incremental sales. In terms of the first objectives, we are very enthused by the positive reaction from Chinese customers to our unique offering of more than 3,000 brands, almost 90% of which were not previously available on PMO and which they now associate with Farfetch. What we have seen in the initial weeks is an opportunity that seems to be very complementary to our other channels in China. Tmall customers have been particularly excited about these new brands and we were positively surprised when we saw that 8 of the top 10 selling brands on our Tmall Star are smaller brands that rank much lower on the passage marketplace. This is highly validating. as it demonstrates that Farfetch's unique selling proposition of bringing an unrivaled global supply directly to the Chinese customer resonates with the wider public in China. We are also very excited about the demographics of the female audience, with initial indications of incrementality to be gained from attracting a more female, lecture-enthusiast customer base. that is more regionally diverse across Tier 1, 2, and 3 cities than our core Farfetch China customers. Tmall also arranges numerous marketing events on its platform. Our storefront launched during Tmall's International Women's Day event, and we kicked off a 360-degree marketing campaign to promote our brand with Tmall consumers. As a result, we have seen as many visitors to our Teemo Star as we have to our own China app and gained 150,000 StarFront friends in the first two months. In terms of our objective to drive sales, we are building momentum. and are very pleased to already see sales that are multiples of the comparable results from our launch on JD. As we continue to build our data pool and gain experience navigating the Tmall ecosystem and leveraging their marketing engine, we expect it to become a meaningful channel for our China business in 2022 and beyond. Overall, we are thrilled to have this fantastic opportunity for the Farfetch brand, with Farfetch representing one of only five buttons on the TLP home screen, while also operating a dedicated storefront offering rich luxury fashion content within Tmall to entice luxury consumers to continue engaging with Farfetch, whether on Tmall or directly on the Farfetch China app. Onto Platform and Luxury New Retail, or L&R, where we have also made significant progress. L&R represents our vision of delivering a global presence for brands and retailers by virtually unifying their customers' interactions across all channels, both on and offline. with one single integration. The L&R offering enables luxury brands and retailers to leverage our full suite of SPS enterprise solutions, along with the Farfetch marketplace and PMO's luxury pavilion, all of which can be integrated with their own monobrand online destinations and SPS powers connected retail stars to achieve a full 360-degree view of the customer and to deliver a hyper-personalized and seamless journey for the luxury customer across all channels. L&R is a massive opportunity to transform the retail experience for the nearly $300 billion global luxury industry Just last week, we hosted an event showcasing our L&R suite of technology solutions for more than 100 top executives of brands and retailers, which was met with great reaction. These solutions are also enabling the shopping journey at our new Groundsbrook Street location, where customers have also been very enthusiastic about the experience. Finally, I am also really pleased to see the incredible momentum of our vision being embraced by partners around the world. On this front, I would like to announce the following. In Monaco, a Ford Chanel boutique went live with our L&R connected retail solutions earlier this month. in Doha, Qatar. And pleased to announce we have signed luxury department store and current fast-hatch marketplace seller, Plantain, to help design the in-store technology and connected retail experience for their new 300,000 square foot flagship. In Brazil, I can confirm we will be partnering with Cidade Matarazzo Complex in development in the heart of São Paulo to implement our connected retail solution to create a technologically advanced luxury experience across the complex's entire 300,000 square foot retail village. Finally, in China, I'd like to share an update on further L&R opportunities we will be exploring with our partner Alibaba. On the heels of our launch on Tmall's luxury pavilion, we have accelerated discussions and plan to launch a joint retail innovation lab in China to operate as an extension of the Alibaba and FastEdge L&R innovation teams. We have also decided to launch a physical luxury retail concept store in China to showcase the L&R retail experience. I am tremendously excited that our luxury new retail vision is gaining traction and that luxury brands around the world are joining us in bringing to bear the latest technologies to revolutionize and personalize the customer journey. I'll now let Stephanie update you on the remaining two strategic pillars.

Thank you, José. Hello, everyone. I'm pleased to share an update for Q1 on our Chapter 2 customer initiatives captured under our brand and unrivaled customer experience pillars, which are aimed at growing and retaining our base of 3.3 million active consumers. On the brand pillar first, I believe that building brand goes way beyond investing in brand campaigns or more visible examples such as our rebrand last year. It requires a fundamental change in mindset and ways of working where the organization needs to reflect the end-to-end customer journey. Along the way, we have brought teams together, hired in expertise to bring a more integrated view of marketing, and we have worked even more closely with the commercial teams to align our supply and demand while emphasizing Farfetch's unique proposition. This was also enabled by a company-wide program called Creating Customer Culture, which aims to imbue every Farfetcher, regardless of their department, with a deep knowledge and understanding of our luxury customer and their preferences, ensuring that these pillars are truly woven into the fabric of the business. That said, brand campaigns are an important element, and we have built on the successes of our new brand identity and full funnel brand marketing campaign introduced in 2020 with the launch of our second brand campaign in four key luxury markets. The message highlights our global boutique offering, which is a key differentiator for Farfetch, and one that extends our hashtag support boutique movement initiated at the start of the pandemic a year ago. Brand building takes time and we look at a basket of measures to track our progress. Recent indications from our initial brand campaign last year, Open Doors, show that our approach is yielding results on two key metrics, awareness and consideration. Over the last 12 months, in other words, pre- and post-campaign, we have seen an overall increase of luxury customers telling us that Farfetch is the first or one of the first places they would consider to shop. In China, one of the key markets where we have been investing in upper funnel marketing, we have seen awareness increase year on year, and consideration in Q1 was higher than any other Western competitor in the market. As we look at Western markets, Google share of search, which measures our portion of organic searches among our peer set, is a strong proxy for consideration. In Q1, we have seen our share of search in our largest market, the U.S., with our brand survey results demonstrate that our brand strategy is working. Our luxury brand partners have also taken notice of our success and applauded our approach to brand building, from our rebrand to our choice of contributors, styling, and talent in our content and brand campaigns. We believe that their increased admiration and confidence in Farfetch as a strategic partner has contributed to our growing number of engagements with brands to execute their own marketing strategies on the Farfetch marketplace, which in turn has increased our year-on-year coverage in consumer press, a key low-cost marketing channel. In Q1, we launched 10 significant brand partnership campaigns on the marketplace. These partnerships are a key component of our Only on Farfetch initiative, our strategy to differentiate our brand by playing to our unique strengths with an ongoing focus on our boutique proposition, on leveraging our New Guards Group acquisition, and delivering exclusive brand partnerships while deploying all our capabilities from our global reach to our innovation features, all of which is crucial to offering our customers an unrivaled customer experience, which is our fifth strategic pillar. Some key highlights here include, first is a four-part program with Gucci, where we activated an immersive world centered around sustainability to celebrate their off-the-grid connection. This is our second multi-part activation with Gucci, demonstrating the value we deliver as a strategic partner and long-term relationship with brands. We leveraged our investment in New Guards Group by offering our customers exclusive capsules from sought-after labels, such as Ambush and Palm Angels. Regional localization continues to be key, and in celebration of Ramadan, we curated an exclusive collection from 30 Middle Eastern and international designers. Our positively far-fetched ESG efforts to be a platform for good are also evidenced by partnerships such as our recently curated edit for FKA Twigs and our collaboration with Balmain and Natal for Black History Month. as a platform we also look to enhance the customer experience via our service offerings and this quarter we were delighted to offer the farfetch fixed luxury restoration service in partnership with one of our open innovation startups the restory to encourage circularity these brand partnerships and services can drive co-branded marketing revenue but also enhance the experience for our customers and we believe ultimately contribute towards improved retention In Q1, we continued to see positive trends on retention, with our existing cohorts outpacing historic trends. But we have also continued to see better retention from our earliest cohort of customers we acquired during the pandemic in Q2 2020 as compared to the Q2 2019 cohort. Thanks to our targeted demand generation efforts and our business strategy to reduce promotions, we are finding that these customers, a higher mix of whom were acquired via a full price sale, have higher repurchase rates. Finally, in addition to our ESG initiatives with various brands and services, we were also thrilled to publish the first edition of our Conscious Luxury Trends Report on Earth Day. The report harnesses numerous data insights across our platform, such as the fact that 88% of customers tell us they care about minimizing their environmental impact. And the customers sold three times as many bags via our Second Life program in 2020 as they did in 2019. All of this to help inform the overall industry in incorporating more conscious practices and programs. And now I'll hand the call over to Elliot to discuss our financial results and outlook.