Farfetch Ltd (FTCH) 2023 Q2 法說會逐字稿

Good afternoon, and welcome to the Farfetch Q2 2023 Results Conference Call. My name is Luke, and I'll be your conference operator today.

下午好，歡迎參加 Farfetch 2023 年第二季業績電話會議。我叫盧克，今天我將擔任您的會議主持人。

(Operator Instructions)

（操作員指令）

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.

謝謝。現在，我想將電話轉給投資人關係副總裁 Alice Ryder。賴德女士，您可以開始您的會議了。

Hello, and welcome to Farfetch's Second Quarter 2023 Conference Call. Today's update will include prepared remarks from José Neves, Founder, Chairman and Chief Executive Officer; Elliot Jordan, our Chief Financial Officer; and Stephanie Phair, our Group President and Chair of NGG. Jose and Elliot will also be available to take questions following the remarks.

您好，歡迎參加 Farfetch 2023 年第二季電話會議。今天的更新將包括創始人、董事長兼執行長 José Neves 的準備好的發言；我們的財務長 Elliot Jordan；以及我們的集團總裁兼 NGG 主席 Stephanie Phair。演講結束後，何塞和艾略特也將回答問題。

Please note that unless otherwise stated, all comparisons on this call will be on a year-over-year basis. During today's call, we will also be displaying a slide present throughout our prepared remarks, which can be accessed as part of the live webcast at farfetchinvestors.com. Following the call, the presentation will also be uploaded to the site.

請注意，除非另有說明，本次電話會議中的所有比較均以同比為基礎。在今天的電話會議中，我們還將在整個準備好的發言過程中播放一張幻燈片，您可以透過 farfetchinvestors.com 在現場網路直播中觀看。通話結束後，簡報也會上傳到網站。

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 8, 2023.

在開始之前，我們想提醒您，我們今天的討論將包括前瞻性陳述。實際結果可能與前瞻性陳述中所示的結果有重大差異，而今天所做的前瞻性陳述僅代表我們今天的預期。我們不承擔公開更新或修改它們的義務。有關可能導致實際結果不同的一些重要風險因素的討論，請參閱我們於 2023 年 3 月 8 日向美國證券交易委員會提交的 20-F 表中的「風險因素」部分。

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 materials which are available on our website at farfetchinvestors.com.

此外，我們將在本次電話會議上參考某些未依照國際財務報告準則報告的財務指標。您可以在我們的收益資料中找到這些非國際財務報告準則財務指標與國際財務報告準則財務指標的對帳表，這些資料可在我們的網站 farfetchinvestors.com 上找到。

And now I'd like to turn the call over to Jose.

現在我想把電話轉給何塞。

Hello, and thank you for joining us today. I am delighted to be taking you through our Q2 results, a quarter which saw an acceleration of our Digital Platform growth as well as further progress across key strategic priorities for 2023. And thanks to the decisive actions we've already taken in terms of fixed costs, we are confident we remain on track to be adjusted EBITDA profitable and free cash flow positive for full year '23.

您好，感謝您今天加入我們。我很高興向大家介紹我們第二季度的業績，本季度我們的數位平台成長加速，2023 年關鍵策略重點也取得了進一步進展。

Before we dive into the details about our results and outlook, I think it's important to take a step back and look at the long-term opportunity for Farfetch. As a founder of Farfetch, I am proud to be celebrating our 15th anniversary in the coming weeks. Since our founding, our strategy has been to build Farfetch to become the global platform for luxury by developing a platform with unrivaled technology, logistics and data capabilities. And in parallel, we built a global community of boutiques, brands and customers across all major luxury markets in the world. This strategy remains our North Star. And thanks to our progress on all of these fronts. Today, we occupy a unique leadership position in global luxury with an extremely exciting future ahead.

在我們深入了解我們的業績和前景之前，我認為有必要回顧一下並看看 Farfetch 的長期機會。身為 Farfetch 的創辦人，我很自豪即將在接下來的幾週慶祝我們的 15 週年紀念日。自成立以來，我們的策略一直是透過開發具有無與倫比的技術、物流和數據能力的平台，將 Farfetch 打造成為全球奢侈品平台。同時，我們在全球所有主要奢侈品市場建立了一個由精品店、品牌和客戶組成的全球社群。這項策略仍是我們的北極星。感謝我們在所有這些方面取得的進步。今天，我們在全球奢侈品領域佔據著獨特的領導地位，未來前景極為令人興奮。

Underpinning the strategy, luxury has continued to demonstrate its resiliency and has become an integral part of culture, now more than ever before, which I believe will pave the way to many more years of industry expansion. Still, the digitization of luxury is in its early innings with digital sales just over 20% of the mix, but expected to expand to over 30% by 2030. This means Farfetch as a leader at the intersection of technology and luxury is poised for significant growth and profitability. This reinforces our confidence in our previously stated plans to scale to a $10 billion GMV business, generating approximately $400 million in adjusted EBITDA and strong free cash flow by 2025.

在這項策略的支撐下，奢侈品繼續展現出它的彈性，並且比以往任何時候都更加成為文化不可分割的一部分，我相信這將為未來多年的行業擴張鋪平道路。儘管如此，奢侈品的數位化仍處於早期階段，數位銷售僅佔奢侈品總銷售額的 20% 多一點，但預計到 2030 年將擴大到 30% 以上。這增強了我們對先前計劃的信心，即到 2025 年將 GMV 業務擴大到 100 億美元，產生約 4 億美元的調整後 EBITDA 和強勁的自由現金流。

In spite of the unprecedented macro challenges since 2022, the decisive actions we've taken in light of these factors make me as confident as ever in our prospects for achieving these targets. The events of 2022, which led to the stoppage of our business in Russia, then our third largest market, a slowdown in China and adverse FX all amidst considerable macro volatility in U.S. and Europe, raised an imperative for decisive action.

儘管2022年以來面臨前所未有的宏觀挑戰，但我們針對這些因素採取的果斷行動，讓我對我們實現這些目標的前景一如既往地充滿信心。 2022 年發生的事件導致我們在當時的第三大市場俄羅斯的業務停止，中國經濟放緩，外匯市場出現不利影響，而美國和歐洲的宏觀波動也相當大，這些都要求我們必須採取果斷行動。

As a result, in 2022, we moved swiftly to implement a significant set of actions on costs and capital allocation. making profitability and cash generation and nonnegotiable priority over growth after a 14-year stretch of rapid expansion. This is now set as our philosophy for cost and capital allocation moving forward. These decisive actions included not only reductions in headcount and other fixed costs, but also a complete redesign of our organization structure and a significant bolstering of our leadership team.

因此，我們在 2022 年迅速採取行動，實施了一系列有關成本和資本配置的重要行動。經過 14 年的快速擴張，獲利能力和現金創造能力已成為比成長更重要的優先事項。這現在已成為我們未來成本和資本分配的理念。這些果斷行動不僅包括削減員工人數和其他固定成本，還包括徹底重新設計我們的組織結構並大力加強我們的領導團隊。

And this June and July, we went even further. We doubled down and executed the most significant cost rationalization in our history as a company. Specifically, the actions taken in the past 2 months are expected to eliminate $150 million of planned 2023 fixed costs through remainder of the year. This means G&A and technology expenses are now expected to be a combined $800 million for full year 2023 as compared to the previously guided $950 million. This delivers $50 million in savings versus 2022 despite incremental resources to support the launch of Reebok and new FPS launches planned for 2023 and 2024.

今年六月和七月，我們又邁進了一步。我們加倍努力，實施了公司史上最重大的成本合理化措施。具體而言，過去 2 個月採取的行動預計將在今年剩餘時間內消除 2023 年計畫的 1.5 億美元固定成本。這意味著，預計 2023 年全年的 G&A 和技術費用總計將達到 8 億美元，而先前預計為 9.5 億美元。儘管增加了資源來支持銳步的推出以及計劃於 2023 年和 2024 年推出的新 FPS 的推出，但與 2022 年相比仍節省了 5000 萬美元。

Just in this last round, we've removed approximately 800 roles are over 11% of starting head count in 2023. As a result of these reductions as well as other cost cuts, costs related to some of our key teams such as our marketplaces, technology, finance, legal and people teams will be back to 2020 levels, which means they have essentially rolled back 3 years of fixed cost expansion. And the cost of our operations, which provides end-to-end part of others are only expected to be 25% above 2020 levels whilst other volume is running 60% higher than 3 years ago.

僅在最近一輪裁員中，我們就裁掉了大約 800 個職位，佔 2023 年起始員工總數的 11% 以上。我們提供的端到端部分營運成本預計僅比 2020 年的水準高出 25%，而其他部分則比 3 年前高出 60%。

Finally, NGG and FPS costs were also rationalized. As these reductions are structural in nature, we expect even greater savings for full year 2024, which we believe increases our ability to achieve our stated 2025 profitability goals. This also means we have made a range of business decisions, including discontinuing beauty as a category on the marketplace and exploring strategic options for Violet Grey further reduction in our real estate footprint, closing several offices and profitable retail locations worldwide and concentrating NGG's resources on key brands among several other actions across the Farfetch group.

最後，NGG和FPS成本也得到了合理化。由於這些削減本質上是結構性的，我們預計 2024 年全年的節省幅度將更大，我們相信這將增強我們實現既定的 2025 年盈利目標的能力。這也意味著我們做出了一系列商業決策，包括停止在市場上銷售美妝產品，探索讓 Violet Grey 進一步減少房地產足蹟的戰略選擇，關閉全球多個辦事處和盈利的零售店，並將 NGG 的資源集中在關鍵品牌上，以及 Farfetch 集團的其他幾項行動。

I want to emphasize a very important point here. Our North Star remains absolutely intact. Amidst executing the strategy of decisive action we remain focused on delivering on all the strategic initiatives discussed in our Capital Markets Day. Our 2023 FES launches remain on track, including the continued global rollout of Ferragamo as well as Bergdorf Goodman, which is expected to launch in Q4.

我想在這裡強調一個非常重要的觀點。我們的北極星依然完好無損。在執行果斷行動策略的同時，我們仍專注於實現資本市場日討論的所有策略性舉措。我們 2023 年的 FES 發布計劃仍在按計劃進行，包括菲拉格慕 (Ferragamo) 和 Bergdorf Goodman 的繼續全球推出，預計將於第四季度推出。

I am delighted to report that we launched 3 additional e-concessions as-a-service brand for Harrods. And that Harrods have also proactively initiated and signed an early renewal of their FPS contract, which extends our partnership into 2028.

我很高興地向大家報告，我們為哈羅德百貨推出了另外三個電子優惠即服務品牌。哈羅德百貨也主動發起並簽署了 FPS 合約的提前續約，將我們的合作關係延長至 2028 年。

Additionally, our announced with Richemont continues to advance through the regulatory review process. We continue to work closely with regulators to obtain the final outstanding approvals for the transaction following approvals in the U.K., China and Italy among others. As a reminder, approval is not required in the U.S.

此外，我們與歷峰集團宣布的合作正在繼續推進監管審查程序。繼獲得英國、中國和義大利等國的批准後，我們將繼續與監管機構密切合作，以獲得交易的最終批准。提醒一下，在美國不需要批准。

I am confident the combination of our decisive actions in terms of focus on profitability and cash generation, and our unwavering commitment for our long-term vision will result in more big wins across our key strategic initiatives while driving us towards achieving our stated 2025 profitability targets.

我相信，我們在獲利能力和現金創造方面的果斷行動，以及我們對長期願景的堅定承諾，將使我們在關鍵策略舉措中取得更多重大勝利，同時推動我們實現既定的 2025 年獲利目標。

Turning now to more recent trends. I'm pleased to report Farfetch continues to grow in Q2 with Digital Platform GMV up 7% and a stronger profitability profile. Total G&A and technology expense was 7% lower. And our focus on cash generation means free cash flow was positive for the quarter. I want to highlight that across most regions, our Marketplace business is performing very strongly.

現在來談談最近的趨勢。我很高興地報告，Farfetch 在第二季度繼續成長，數位平台 GMV 成長 7%，獲利能力更強。總一般行政開支和技術費用下降了 7%。我們專注於現金創造，這意味著本季的自由現金流為正。我想強調的是，在大多數地區，我們的市場業務表現非常強勁。

In Q2, GMV in EMEA grew double digits. And in the Americas, excluding the U.S., it grew more than 20%. Overall, active customer growth was 7% and other growth was 9%. Our margins remained stable with Digital Platform or the contribution margin of 31% and brands and boutiques continue to double down on Farfetch with over 40% unit growth of supply.

第二季度，EMEA 地區的 GMV 成長了兩位數。除美國以外的美洲地區增幅超過20%。整體來看，活躍客戶成長率為7%，其他客戶成長率為9%。我們的利潤率在數位平台下保持穩定，貢獻利潤率為 31%，品牌和精品店繼續在 Farfetch 上加倍投入，供應單位增長率超過 40%。

In U.S., GMV accelerated with Q2 performance sequentially better, although still single-digit negative year-on-year together with a 10% reduction in demand generation spend. However, as in the case of many others in the luxury industry, we have seen a less buoyant luxury customer in the U.S. We have seen similar macro dynamics in Mainland China. Although we are seeing improvements with Q2 performance sequentially higher, GMV was also in single-digit decline. The reality is that the recovery has not been as robust as we had expected when we reported our Q1 results. And as a consequence, we have also reduced demand generation investment in this region.

在美國，GMV 加速成長，第二季業績較去年同期好轉，儘管年比仍為個位數負成長，且需求產生支出減少了 10%。然而，正如奢侈品行業的許多其他公司的情況一樣，我們發現美國的奢侈品消費者不再那麼活躍。儘管我們看到第二季業績環比成長，但 GMV 也出現了個位數的下降。現實情況是，經濟復甦並不像我們報告第一季業績時預期的那樣強勁。因此，我們也減少了該地區的需求產生投資。

Like in the U.S., we believe this is not Farfetch specific as other luxury brands have similarly indicated China is not growing as quickly as previously expected after its reopening in December. Whilst brands are reporting strong in-store growth against comps during the previous years, strict lockdowns, online sales have not recovered as quickly as expected by many in the luxury industry. The slower recovery in these 2 large markets, offsetting the strong momentum we continue to expect in most other regions leads us to moderate our second half 2023 growth expectations for the Marketplace.

與美國一樣，我們認為這並非 Farfetch 獨有的現象，因為其他奢侈品牌也同樣表示，中國在 12 月重新開放後的成長速度並不像之前預期的那麼快。儘管各大品牌報告稱，與前幾年相比，店內銷售成長強勁，但由於嚴格的封鎖，線上銷售的復甦速度並沒有像奢侈品行業許多人預期的那樣快。這兩個大市場的復甦速度較慢，抵消了我們預期大多數其他地區將繼續保持的強勁勢頭，這導致我們下調了對 2023 年下半年市場成長的預期。

Our group outlook for 2023 also factors in recent developments in NGG's business, which Stephanie will discuss. Overall, I am delighted to confirm Farfetch is growing. Our key strategic initiatives remain on track. And thanks to the decisive actions we've already taken in terms of fixed costs, we are confident about our objective to be profitable at the adjusted EBITDA level and generate positive free cash flow for full year 2023.

我們對 2023 年集團的展望也考慮了 NGG 業務的最新發展，Stephanie 將對此進行討論。總的來說，我很高興地確認 Farfetch 正在成長。我們的關鍵策略舉措仍在順利推進。而且由於我們在固定成本方面已經採取了果斷的行動，我們對在調整後的 EBITDA 水平上實現盈利並在 2023 年全年產生正的自由現金流的目標充滿信心。

Turning to our executive team and the evolution of our organization. Tim Stone has joined Farfetch to assume the CFO role as Elliot Jordan end his more than 8-year tenure at the end of this month. We're delighted to welcome Tim to Farfetch. He has 20 years' experience at Amazon and was also CFO of Ford. Tim brings extensive knowledge of best-in-class customer-centric marketplaces and e-commerce platforms, along with experience in scaling SaaS businesses, proficiency in both 3P and 1P businesses and has a deep understanding of digital as well as physical retail. He shares my vision of building Farfetch as a leading company at the intersection of tech and luxury with a very strong profit and free cash flow generation profile for the long term. Tim is moving to London this month and will be a key member of the executive team taking Farfetch to its next level. And he has big shoes to fill.

談談我們的執行團隊和組織的發展。蒂姆·斯通 (Tim Stone) 已加入 Farfetch 擔任首席財務官，埃利奧特·喬丹 (Elliot Jordan) 將於本月底結束其八年多的任期。我們很高興歡迎 Tim 加入 Farfetch。他在亞馬遜有20年的工作經驗，也曾擔任福特的財務長。 Tim 擁有一流的以客戶為中心的市場和電子商務平台的豐富知識，以及擴展 SaaS 業務的經驗，精通 3P 和 1P 業務，並對數位和實體零售有著深刻的理解。他與我有著相同的願景：將 Farfetch 打造為一家處於科技與奢侈品交匯處的領先公司，並長期擁有非常強勁的利潤和自由現金流生成能力。蒂姆將於本月遷往倫敦，並將成為 Farfetch 執行團隊的重要成員，帶領公司邁上新台階。他還肩負著巨大的責任。

Elliot leaves with the fondest of memories and will always be an important part of the Farfetch history. Having joined Farfetch as our first CFO and partnering with me to multiply our revenue by 16x during his tenure, transition the company from private to public and leading so many amazing teams and projects.

艾略特帶著最美好的回憶離開，並將永遠成為 Farfetch 歷史的重要組成部分。他加入 Farfetch 並擔任我們的首任首席財務官，與我合作，在任職期間將我們的收入提高了 16 倍，將公司從私營企業轉變為上市公司，並領導了許多出色的團隊和項目。

We have significantly strengthened our organization and leadership over the last 12 months. Overall, these additions of exciting talent fill our ranks with an even wider skill set, hunger for success and huge amounts of energy as we approach a new very exciting chapter for the Farfetch Group.

在過去的 12 個月裡，我們大大加強了組織和領導力。總的來說，隨著 Farfetch 集團即將迎來激動人心的新篇章，這些令人興奮的人才的加入使我們的隊伍擁有了更廣泛的技能、對成功的渴望和巨大的能量。

And now I'll turn over to Stephanie to update us on NGG.

現在我將請史蒂芬妮向我們介紹 NGG 的最新情況。

Thank you, José, and hello, everyone. Four years ago, we acquired NGG because we saw great potential behind combining its culturally relevant content creation platform with the Farfetch technology platform, and it has been a successful combination. Having recently added responsibilities of Chair of New Guards Group to my existing role as Group President, I'd like to spend some time today updating you on the business. In particular, I'll focus on our Q2 performance, the recent organizational changes and update you on the brand portfolio and our recently launched Reebok business.

謝謝你，何塞，大家好。四年前，我們收購了 NGG，因為我們看到了其文化相關內容創作平台與 Farfetch 技術平台結合的巨大潛力，而且這是一個成功的組合。我目前擔任集團總裁，最近又兼任 New Guards Group 董事長，因此今天我想花一些時間向大家介紹一下業務狀況。特別是，我將重點放在我們第二季的業績、最近的組織變革，並向您介紹品牌組合和我們最近推出的銳步業務。

Starting with Q2 performance. In Q2, Brand Platform GMV decreased 41% to $63 million. This decline was driven by a phasing of deliveries from Q2 as wholesale accounts, predominantly department stores and retailers in the U.S. and U.K., reduced intake deliveries due to heightened inventory positions, resulting from the challenging macro environment. The phasing of shipments was also due to some onboarding challenges with the launch of Reebok, which have resulted in a slower ramp-up. However, we expect a strong recovery of these deliveries to result in Q3 Brand Platform GMV of over $150 million.

從第二季的表現開始。第二季度，品牌平台GMV下降41%至6,300萬美元。這一下降是由於從第二季度開始批發客戶（主要是美國和英國的百貨公司和零售商）由於宏觀環境嚴峻導致庫存增加而減少了進貨量，導致交付量逐步減少。分階段出貨也是因為銳步的推出帶來了一些入職挑戰，導致成長速度放緩。不過，我們預計這些交付的強勁復甦將使第三季品牌平台 GMV 超過 1.5 億美元。

For the remainder of the year, we expect wholesale to remain under pressure as we have seen retailers adjusting their open to buy for the spring/summer '24 season. This is reflected in our revised 2023 expectations for the Brand Platform, which Elliot will cover. It's important to note, however, that this dynamic is specific to wholesale. In NGG's digital direct-to-consumer channel, GMV grew double digits during Q2.

在今年剩餘時間內，我們預計批發業務仍將面臨壓力，因為我們已經看到零售商調整其開盤價以迎接 2024 年春夏季的採購。這反映在我們對品牌平台 2023 年的修訂預期中，Elliot 將負責該平台的報告。但值得注意的是，這種動態僅限於批發領域。在NGG的數位直銷管道中，GMV在第二季度實現了兩位數成長。

Moving on to NGG's organization changes. Since taking this role, following the recent transition of the NGG founders, I have been spending time with the team in Milan reviewing the business strategy and operations and have begun implementing actions to streamline NGG and allocate resources to optimize profitability.

繼續討論 NGG 的組織變革。自擔任這一職位以來，隨著 NGG 創始人最近的過渡，我一直與米蘭的團隊一起審查業務戰略和運營，並已開始採取行動精簡 NGG 並分配資源以優化盈利能力。

First, we have cemented a strong and capable leadership who have been at NGG over the past few years. We also restructured NGG to function more efficiently as an operating platform to service existing and future brands within the portfolio. This, along with our plans to further integrate NGG with the Farfetch platform has enabled us to reduce NGG's head count to 2021 levels.

首先，過去幾年來，我們鞏固了 NGG 強大而有能力的領導階層。我們也重組了 NGG，使其作為營運平台更有效率地運作，為投資組合中現有和未來的品牌提供服務。這項舉措加上我們進一步將 NGG 與 Farfetch 平台整合的計劃，使我們能夠將 NGG 的員工人數減少到 2021 人的水平。

Going forward, we will also focus our resources and efforts on the brands with the greatest scale and profitability profile. As a result of these actions, direct G&A for full year 2023 at NGG is expected to decrease double-digit percentage as compared to our original expectations for the year, and we expect some of these savings to carry into 2024 for a stronger profitability profile.

展望未來，我們也將集中資源和精力於最具規模和獲利能力的品牌。由於這些行動，NGG 2023 年全年的直接 G&A 預計將比我們最初對該年度的預期下降兩位數百分比，並且我們預計其中一些節省的費用將延續到 2024 年，以實現更強勁的盈利能力。

Moving to Reebok. We are pleased to have launched this brand across direct-to-consumer and wholesale channels in May. While there have been some initial challenges in transitioning the business from adidas, with the process fully complete, we are focused on the underlying opportunity to tap into NGG's brand building talent and expertise to reinvigorate this heritage brand. We expect the initial transitional challenges to result in Reebok now delivering approximately $200 million across both the Brand and Digital platforms in 2023 and remain enthusiastic about the Brand's prospects, which is supported by the strong consumer and partner engagement since launch.

轉向銳步。我們很高興在五月透過直接面向消費者和批發管道推出了這個品牌。儘管在從阿迪達斯轉型業務的初期遇到了一些挑戰，但隨著轉型過程的全面完成，我們將專注於利用 NGG 的品牌建立人才和專業知識來重振這個傳統品牌的潛在機會。我們預計，最初的過渡挑戰將使銳步在 2023 年透過品牌和數位平台實現約 2 億美元的收入，並且我們仍然對該品牌的前景充滿熱情，這得益於自推出以來強大的消費者和合作夥伴的參與。

We're also excited to have launched in July, the first iteration of Reebok's premium line. This line is the prologue of the full launch of products and collaborations expected next year. Overall, we continue to see significant strength within NGG, a business that has contributed to the growth and profitability of Farfetch, delivering GMV growth at a 20% CAGR from 2018 to 2022, ahead of luxury industry growth of 7% over the same period. We believe that brands within the NGG portfolio will continue to be forces of culture in the industry and that our recent organizational changes led by a very strong management team will also allow NGG to operate more efficiently, drive profitable growth and unlock further synergies with the overall Farfetch Group.

我們也很高興在七月推出了銳步高階系列的首個版本。此系列是預計明年全面推出的產品和合作的序幕。總體而言，我們繼續看到 NGG 的顯著優勢，該業務為 Farfetch 的成長和盈利能力做出了貢獻，2018 年至 2022 年期間 GMV 複合年增長率達 20%，高於同期奢侈品行業 7% 的增長率。我們相信，NGG 旗下品牌將繼續成為產業文化的力量，我們最近由強大管理團隊領導的組織變革也將使 NGG 營運更有效率，推動獲利成長，並與整個 Farfetch 集團產生進一步的協同效應。

And now I'd like to pass the call on to Elliot, who will discuss our financial results and outlook.

現在我想將電話轉給艾利歐特，他將討論我們的財務結果和前景。

Thank you, Stephanie, and hello to you all. I'd like to summarize what we have achieved across Q2 and then break out our expectations for the rest of the year. There are several key points to highlight from within the quarter.

謝謝你，史蒂芬妮，大家好。我想總結我們在第二季的成就，然後闡述我們對今年剩餘時間的期望。本季有幾個關鍵點需要強調。

First, the Digital Platform is delivering growth with Digital Platform GMV up 7% and Digital Platform Services revenue up 10%. In addition, Digital Platform order contribution margin remained strong at 31.2%, despite macroeconomic and promotional headwinds. The rationalization of the business since 2022 has delivered significant savings in the cost base, which is lower year-on-year and we'll continue to deliver financial benefit across H2, and we have achieved positive free cash flow driven from a stronger working capital position. Overall, our use of cash has improved by $316 million versus Q2 and we finished the quarter with $454 million in cash and cash equivalents.

首先，數位平台成長，數位平台 GMV 成長 7%，數位平台服務收入成長 10%。此外，儘管面臨宏觀經濟和促銷方面的阻力，數位平台訂單貢獻利潤率仍保持強勁，達到 31.2%。自 2022 年以來，業務合理化已顯著節省了成本基礎，成本同比有所降低，我們將在下半年繼續帶來財務收益，並且在營運資本狀況增強的推動下，我們實現了正的自由現金流。總體而言，我們的現金使用量與第二季相比增加了 3.16 億美元，本季末我們的現金和現金等價物餘額為 4.54 億美元。

Finally, the Brand Platform experienced delays in shipping wholesale orders, meaning approximately $50 million in revenue at a circa 50% gross margin has moved from Q2 to the second half of the year. This movement had an associated impact on adjusted EBITDA and inventory levels.

最後，品牌平台在出貨批發訂單時遇到了延遲，這意味著約 5,000 萬美元的收入、約 50% 的毛利率從第二季轉移到了下半年。這一變動對調整後的 EBITDA 和庫存水準產生了相關影響。

Looking at the P&L in Q2, we achieved GMV of $1 billion, a 1% increase on a reported and constant currency basis. This growth was driven from the Digital Platform, which accelerated growth to 7%. Brand Platform GMV declined 41% due to delayed wholesale shipments as retailers phase back deliveries of fall/winter 23, whilst they clear through their spring/summer '23 inventory holdings. This decline in GMV had an impact on revenue, which declined 1% year-on-year and gross profit, which declined 9%. Demand generation experience has improved year-on-year by 6% and total G&A and technology spend improved 7% to be $14 million lower than last year and $15 million lower than Q1.

從第二季的損益表來看，我們的 GMV 達到了 10 億美元，以報告和固定匯率計算成長了 1%。這一成長主要得益於數位平台，該平台將成長率加速至 7%。由於零售商逐步減少23年秋冬季產品的出貨，同時清理23年春季和夏季庫存，導致批發出貨延遲，品牌平台 GMV 下降了 41%。 GMV 的下降對收入產生了影響，收入年減了 1%，毛利也下降了 9%。 需求產生經驗年增 6%，總行政費用和技術支出成長 7%，比去年下降 1,400 萬美元，比第一季下降 1,500 萬美元。

We achieved adjusted EBITDA of minus $31 million which was $4 million better than Q1 due to the growth of the Digital Platform and sequential reduction in G&A and technology spend. The decrease in EBITDA versus last year was due to the delayed Brand Platform shipments, which we are now expecting to recognize an H2 revenue.

我們實現的調整後 EBITDA 為負 3,100 萬美元，比第一季高出 400 萬美元，這得益於數位平台的成長以及 G&A 和技術支出的連續減少。 EBITDA 與去年同期相比有所下降，原因是品牌平台出貨延遲，我們目前預計該業務將確認為下半年的收入。

Let's look more closely at the performance of the Digital Platform, which has seen some momentum in Q2. As I said earlier, the Digital Platform GMV growth accelerated to 7%. This was driven by strong underlying growth from the Marketplace and double-digit growth from Farfetch Platform Solutions with the addition of GMV from Reebok and Ferragamo, which took effect across Q2. The Digital Platform grew slower than expected, driven by the U.S. and China on the Marketplace and as GMV from Reebok ramped up less quickly than anticipated.

讓我們更仔細地看一下數位平台的表現，它在第二季度取得了一些進展。正如我之前所說，數位平台GMV成長加速至7％。這是由於 Marketplace 強勁的基礎成長、Farfetch 平台解決方案的兩位數成長，以及 Reebok 和 Ferragamo 的 GMV 的加入（於第二季生效）。數位平台的成長速度低於預期，主要是受美國和中國市場的影響，而且銳步的 GMV 成長速度低於預期。

The Marketplace performed well with a 7% increase in active consumers to $4.1 million as we added 550,000 new consumers in the quarter, and orders per customer increased slightly to deliver 9% order growth. This growth was partially offset by a 6% decline in average order value to $562 due to a higher markdown mix year-on-year.

本季度，我們增加了 55 萬名新消費者，市場表現良好，活躍消費者數量增加了 7%，達到 410 萬美元，每位客戶的訂單量也略有增加，實現了 9% 的訂單增長。由於降價幅度較大，平均訂單價值下降 6% 至 562 美元，部分抵消了這一增長。

Digital Platform Services revenue increased ahead of GMV at 10% due to an increased mix of first-party revenue and the addition of Reebok direct-to-consumer sales on the Digital Platform. In addition, we saw an increase in third-party take rate by 60 basis points to 31.8%, which we believe reflects the value we are providing partners on the platform.

由於第一方收入組合增加以及數位平台上增加了銳步直接面向消費者的銷售，數位平台服務收入比 GMV 增長了 10%。此外，我們看到第三方收費率增加了 60 個基點，達到 31.8%，我們相信這反映了我們為平台上的合作夥伴提供的價值。

Digital platform order contribution margin was 31.2%, down 50 basis points principally due to a reduction in first-party gross margin due to action we are taking to reduce inventory levels, plus the increased mix of first-party revenue at lower gross margin offset by a significant reduction in demand generation expense to 18.1% of Digital Platform Services revenue compared to 21.1% last Q2.

數位平台訂單貢獻利潤率為 31.2%，下降 50 個基點，主要原因是我們採取措施降低庫存水準導致第一方毛利率下降，再加上毛利率較低的第一方收入組合增加，但需求產生費用大幅下降至數位平台服務收入的 18.1%，而去年第二季為 21.1%。

We continue to improve new customer unit economics with lower customer acquisition costs year-on-year, and engagement costs on existing customers have also improved year-on-year. These savings are driving a higher LTV over CAC ratio with 3-month LTV over CAC improving year-on-year for each of the last 3 quarters.

我們持續提升新客戶單位經濟效益，客戶獲取成本逐年降低，現有客戶的參與成本也逐年改善。這些節省推動了 LTV 與 CAC 比率的提高，在過去 3 個季度中，3 個月 LTV 與 CAC 比率逐年提高。

Looking ahead, we are adjusting our near-term expectations across H2 to reflect an updated assessment of the luxury market in the U.S. and China. This means moderating our GMV growth expectations. However, our focus on operating the business off a lower cost base means we continue to expect to deliver profitability in 2023 with up to 1% adjusted EBITDA margin.

展望未來，我們正在調整下半年的近期預期，以反映對美國和中國奢侈品市場的最新評估。這意味著我們要降低 GMV 成長預期。然而，我們專注於以較低的成本基礎運營，這意味著我們仍有望在 2023 年實現盈利，調整後的 EBITDA 利潤率高達 1%。

GMV is now expected to be approximately $4.4 billion, up from $4 billion in 2022. On the Digital Platform, we are now expecting Digital Platform GMV to be approximately $3.85 billion, up 10% year-on-year. This assumes continued strong growth across most markets, offset by ongoing mid-single-digit decline in the U.S. and China for the rest of 2023.

目前預計 GMV 約為 44 億美元，高於 2022 年的 40 億美元。這意味著大多數市場將繼續保持強勁成長，但美國和中國在 2023 年剩餘時間內將持續出現中等個位數的下滑。

On the Brand Platform, we are now guiding to GMV of approximately $450 million, broadly flat year-on-year. This estimate reflects ongoing macro headwinds affecting wholesale orders of existing brands offset by incremental GMV from the launch of Reebok this year. We continue to expect GMV growth to improve into Q3 and then Q4 supported by underlying growth in the Marketplace and additional GMV as Reebok's direct-to-consumer channel strengthen and if [peer] starts to service Bergdorf Goodman in Q4. The guide of GMV also reflects the expected catch-up in delayed Brand Platform shipments from Q2.

在品牌平台上，我們目前預計GMV約為4.5億美元，與去年同期基本持平。這項估計反映了持續的宏觀不利因素對現有品牌批發訂單的影響，但被今年銳步推出所帶來的增量 GMV 所抵消。我們繼續預計，在市場基礎成長和額外 GMV 的推動下，GMV 將在第三季和第四季改善，因為 Reebok 的直接面向消費者的管道加強，並且如果 [同行] 在第四季度開始為 Bergdorf Goodman 提供服務。 GMV 指引也反映了第二季品牌平台出貨量延遲的預期追趕。

On G&A and technology costs, we're now guiding to circa $800 million this year, which is a $150 million saving compared to the initial guidance as we continue to drive cost savings across the business. This should result in cost $50 million lower than last year, which delivers a return to operating cost leverage.

在一般行政管理和技術成本方面，我們目前預計今年的成本約為 8 億美元，與最初的預期相比節省了 1.5 億美元，因為我們將繼續推動整個業務的成本節約。這將使成本比去年降低 5,000 萬美元，從而實現營運成本槓桿的回報。

Revenue growth is expected at 8% to 10%. On margins, our forecast for Digital Platform order contribution margin remains higher year-on-year at 33% to 35%. This position is supported by anticipated improving gross margins and more efficiency in demand generation expense versus 2022. Inventory actions and a higher Reebok mix means gross margin on the Brand Platform is now expected at 46% to 48%.

預計收入成長率為8%至10%。在利潤率方面，我們預測數位平台訂單貢獻利潤率仍將年增至 33% 至 35%。這一立場得到了預計 2022 年相比毛利率將提高和需求產生費用效率提高的支持。

On cash, we expect to deliver positive free cash flow and have taken the opportunity to expand our existing term loan B facility with expected net proceeds of approximately $180 million boosting our overall liquidity. We now expect to deliver cash and cash equivalents of over $800 million at year-end. This position is driven from higher GMV growth and profitability compared to H1 and further improvements in our working capital position, particularly within Q4.

在現金方面，我們預計將實現正的自由現金流，並藉此機會擴大我們現有的定期貸款 B 額度，預計淨收益約為 1.8 億美元，從而提高我們的整體流動性。我們目前預計年底的現金和現金等價物將超過 8 億美元。這一地位得益於與上半年相比更高的 GMV 成長和獲利能力，以及我們的營運資本狀況的進一步改善，尤其是在第四季度。

It only leaves me to thank José, the Board and everyone at Farfetch for all of the memorable moments and fantastic achievements we've shared over the last 8.5 years. It has been an honor to be part of a business, which I believe is positioned at the center of gravity of growth in the luxury industry over the longer term.

我只想感謝 José、董事會以及 Farfetch 的每一個人，感謝我們在過去 8.5 年裡共同創造的所有難忘時刻和輝煌成就。我很榮幸能夠成為這家企業的一份子，我相信從長遠來看，這家企業將處於奢侈品行業成長的重點。

I'm delighted to be passing the CFO baton Tim, who has the experience and leadership skills to help guide the business through its next phase of profitable growth. I wish all my talented colleagues at Farfetch, all the best.

我很高興將財務長的接力棒交給提姆，他擁有豐富的經驗和領導技能，可以幫助引導企業進入下一階段的獲利成長。我祝 Farfetch 所有才華橫溢的同事一切順利。

And with that, I'd like to pass the call back to José for his closing remarks.

最後，我想將電話轉回給何塞，請他作最後發言。

Thank you, Elliot. Over the past 15 years, we have built a leader at the intersection of luxury and technology with incredible competitive advantages and huge opportunities for growth. Nonetheless, the current macro environment requires decisive action. We have shifted our paradigm of cost and capital allocation to prioritize profit and cash generation as nonnegotiables while still maintaining our North Star intact.

謝謝你，艾略特。在過去的 15 年裡，我們已經在奢侈品和技術的交匯處打造了一個領導者，擁有令人難以置信的競爭優勢和巨大的成長機會。儘管如此，當前的宏觀環境需要採取果斷行動。我們已經改變了成本和資本分配模式，將利潤和現金創造作為不可協商的優先事項，同時仍然保持我們的北極星完好無損。

We've redesigned our organization and strengthened our leadership team. And in the last 2 months, have doubled down by further rationalizing our business, all whilst delivering against our key strategic initiatives, which makes me more confident than ever in achieving our previously stated 2025 goals of scaling to a $10 billion GMV business, generating approximately $400 million in adjusted EBITDA and strong free cash flow and continuing to make progress in our mission to be the global platform for luxury.

我們重新設計了我們的組織並加強了我們的領導團隊。在過去的兩個月裡，我們加倍努力，進一步合理化我們的業務，同時實現我們的關鍵戰略舉措，這讓我比以往任何時候都更有信心實現我們之前提出的 2025 年目標，即擴大到 100 億美元的 GMV 業務，創造約 4 億美元的調整後 EBITDA 和強勁的自由現金流，並繼續朝著成為全球奢侈品平台的使命邁進。

I want to extend a huge thank you to all Farfetchers who built the amazing company we are today and who have embraced the need for decisive action and are working relentlessly to build an incredible future for this company.

我要向所有 Farfetch 員工致以誠摯的謝意，是你們成就了我們今天這樣出色的公司，是你們採取了果斷行動，不懈努力，為公司創造了美好的未來。

Thank you, and we will now open the call for questions.

謝謝大家，我們現在開始提問。

(Operator Instructions) Our first question comes from Doug Anmuth from JPMorgan.

（操作員指示）我們的第一個問題來自摩根大通的 Doug Anmuth。

I just wanted to ask, is the $150 million in savings that you talked about, is that fully incremental? Or is that including the previous cost reductions that you've just talked. And then is there anything about the declines in the U.S. and China, is there anything that [have led] purely related to macro and inventories (inaudible) your view.

我只是想問一下，您說的 1.5 億美元的節省是完全增量的嗎？或包括您剛才談到的之前的成本削減。那麼，美國和中國的衰退有什麼影響嗎？

Doug, would you mind repeating your second question? It didn't come through?

道格，你介意重複你的第二個問題嗎？沒成功嗎？

Sorry, I apologize. Is there anything structural in the declines in the U.S. and China or purely related to macro (inaudible)

對不起，我很抱歉。美國和中國的衰退是否有結構性因素，還是純粹與宏觀因素有關（聽不清楚）

Doug, this is José, great to talk to you. So in terms of the actions that we've taken, we always said 2023 was our year of execution. And I'm glad that we are delivering against the strategic initiatives and the ones we haven't delivered yet are on track, Bergdorf Goodman for Q4, cartier.com, NET-A-PORTER, et cetera, slated for 2024, regulatory approval pending, but with good news from U.K., China, Italy and others.

道格，我是何塞，很高興與您交談。因此，就我們所採取的行動而言，我們一直說 2023 年是我們的執行年。我很高興我們正在履行戰略舉措，尚未實施的舉措也在按計劃實施，Bergdorf Goodman 將於第四季度上市，cartier.com、NET-A-PORTER 等計劃於 2024 年上市，尚待監管部門批准，但英國、中國、意大利和其他國家也傳來了好消息。

And to your question, as part of the execution focus, we have taken action in the last 2 months, which is a continuation of the decisive actions that we've taken starting in 2022. The $150 million cut is versus our guidance. So we guided the market to $950 million from $850 million in 2022 to support the new initiatives and launches.

對於您的問題，作為執行重點的一部分，我們在過去 2 個月內採取了行動，這是我們從 2022 年開始採取的果斷行動的延續。因此，我們預計市場規模將從 2022 年的 8.5 億美元增至 9.5 億美元，以支持新措施和新發布。

So I think what is very pleasing to see is that we are absolutely delivering these new launches and on track whilst being able to actually reduce the planned SG&A to $800 million this year, which is $50 million less than last year. So that's the plan. And you can see already sequentially the SG&A line from Q4 into Q1, into Q2. You can see already the results of the actions we've taken last year. Now the actions we've taken in June and July will continue to obviously be reflective.

因此，我認為非常高興地看到，我們絕對可以按計劃完成這些新產品的發布，同時今年我們能夠將計劃的銷售、一般及行政費用 (SG&A) 實際減少到 8 億美元，比去年減少了 5,000 萬美元。這就是計劃。您可以看到銷售、一般及行政開支從第四季度連續進入第一季度，然後再進入第二季度。你已經可以看到我們去年所採取行動的成果。現在，我們在六月和七月採取的行動顯然將繼續產生反思作用。

So we're on track to that $800 million, which really demonstrates a relentless focus on execution and efficiency. And all in all, I think it's important to take a step back and I'll touch on U.S. and China, which is your second part of the question. To take a step back, and Farfetch is going to grow this year. The Digital Platform, our core business is going to grow double digits, 10% to be precise. The -- it's going to be a record year in terms of GMV at $4.4 billion GMV, the highest in our history as a business, a record year in terms of adjusted EBITDA, a year of positive free cash flow.

因此，我們有望實現 8 億美元的目標，這確實體現了我們對執行和效率的不懈關注。總而言之，我認為有必要退一步來談談美國和中國，這是您問題的第二部分。退一步來說，Farfetch 今年將會成長。數位平台，我們的核心業務將實現兩位數的成長，準確地說是 10%。今年的 GMV 將會創下歷史新高，達到 44 億美元，創下企業史上的最高紀錄，調整後 EBITDA 也會創下歷史新高，自由現金流也將呈現正值。

And therefore, whilst the macro headwinds in the U.S. and China are definitely making us more prudent in terms of the outlook for the second half of the year. There is a lot of health in our core business and an incredible advantage in terms of delivering on our strategic initiatives.

因此，儘管美國和中國的宏觀不利因素無疑地使我們對下半年的前景更加謹慎。我們的核心業務非常健康，在實施策略計劃方面具有令人難以置信的優勢。

The U.S., I don't think this is Farfetch specific. You've seen the luxury industry, many luxury companies in double-digit negative in the U.S., wholesale doing worse than direct-to-consumer. And that's what we see also in our business. In fact, the good news is that the U.S. is accelerating sequentially and we are in single-digit negative. It's still a negative. And therefore, this is obviously less buoyant than what we would have hoped for.

美國，我不認為這是 Farfetch 特有的。你已經看到了奢侈品行業，許多奢侈品公司在美國都遭遇了兩位數的負成長，批發業務的表現比直接面向消費者的業務更差。我們也在我們的業務中看到了這一點。事實上，好消息是美國正在連續加速成長，目前我們的成長率為個位數負值。這仍然是負面的。因此，這顯然不如我們所希望的那麼樂觀。

And a very similar picture in China. I think it's well publicized, the Chinese economy didn't bounce back to the extent that everyone expected after the lockdowns. In-store growth for luxury is strong. But of course, it's not apples-to-apples, because these stores were all closed last year. And what we hear in the industry and what we're seeing in our own platform is that the recovery is not as explosive as everyone thought it would be. We had some green shoots. We were in positive growth quarter to date when we spoke to you last time, which was encouraging, but we're now on single-digit negative.

中國的情況也非常相似。我認為這是眾所周知的，中國經濟在封鎖之後並沒有像大家預期的那樣反彈。奢侈品店內銷售成長強勁。但當然，這並不是同類比較，因為這些商店去年都關閉了。我們從業內聽到的消息以及在我們自己的平台上看到的情況是，復甦並不像大家想像的那麼迅速。我們有一些綠芽。上次我們與您交談時，我們這個季度迄今為止處於正增長狀態，這是令人鼓舞的，但現在我們的業績為個位數負增長。

So we believe that the right thing to do is there for to be prudent and adjust our plans and also adjust our spending with reduced demand generation spending double digits in the U.S. We've reduced it in China as well in face of the macro environment, which is across the industry, it's not Farfetch specific.

因此，我們認為正確的做法是謹慎行事，調整我們的計劃，並調整我們的支出，在美國減少兩位數的需求生成支出。

So China is improving and with a sequential improvement. We believe it will be in single-digit negative based on everything we're seeing and taking a balanced outlook for the rest of the year, long-term tremendous opportunity. Obviously, second largest luxury goods market, and we have an impressive consumer proposition when we continue to see incredible potential in that business and in the partnerships we have in that country.

因此，中國正在進步，並且呈連續進步。根據我們所看到的一切以及對今年剩餘時間的平衡展望，我們認為今年的銷售額將為個位數負成長，但從長期來看，這是一個巨大的機會。顯然，這是第二大奢侈品市場，當我們繼續看到該業務以及我們在該國的合作夥伴關係中存在的巨大潛力時，我們擁有令人印象深刻的消費者主張。

Short term, there's -- these movements that need to be navigated. But we've -- as a business, I believe that we've taken the decisive actions in face of the current macro environment. And again, we're going to be on double-digit growth for the core business, a record year in terms of GMV profitability, generating cash. And therefore, whilst not as fast growth as we originally expected in face of the macro environment. It's still going to be a strong year for Farfetch.

短期內，這些動作需要被引導。但作為一家企業，我相信，面對當前的宏觀環境，我們已經採取了果斷的行動。我們的核心業務將實現兩位數成長，GMV 獲利能力和現金產生量也將創下歷史新高。因此，雖然從宏觀環境來看，成長速度不如我們最初預期的那麼快。對 Farfetch 來說這仍將是強勁的一年。

Our next question comes from Jason Helfstein at Oppenheimer.

我們的下一個問題來自奧本海默公司的 Jason Helfstein。

So the guidance suggests significant second half share improvement versus your luxury peers relative to Street numbers even though you've lost here for now like -- something like 6 or 7 quarters. So I assume some of the catalysts is some of the inorganic stuff around Brand Platform. But I mean, can you unpack how much of the -- of that second half of Brand Platform versus, we'll call it like organic share gains and why investors should have the confidence that you can execute on those kind of share gains just given recent performance and kind of the new guide down, et cetera.

因此，該指引表明，相對於華爾街的豪華汽車同行，下半年的市場份額將有顯著提高，儘管目前你們在這方面已經損失了 6 或 7 個季度。因此我認為一些催化劑是品牌平台周圍的一些無機物質。但我的意思是，你能否解釋一下品牌平台後半部分的增長有多少，我們稱之為有機份額增長，以及為什麼投資者應該有信心，考慮到最近的表現和新的指導方針，你能夠實現這種份額增長，等等。

I think we should take a step back and really look at the performance in terms of a slight longer-term perspective. In terms of the Brand Platform, for example, the Brand Platform, NGG, as a business, we grew 20% CAGR between 2018 and 2022, that's 3x faster than the rest of the luxury industry, which grew at 7%. If we look at Farfetch, the digital, the core business, you have a very similar picture. So this is a business that consistently over a 3, 4-year period has gained market share.

我認為我們應該退一步思考，從稍微長期的角度來真正審視績效。就品牌平台而言，例如品牌平台 NGG 作為一項業務，我們在 2018 年至 2022 年期間的複合年增長率為 20%，是奢侈品行業其他部分 7% 增長率的 3 倍。如果我們看看 Farfetch 的數位核心業務，你會看到非常相似的景象。所以，這家企業的市佔率在過去的3到4年持續成長。

Of course, 2022 was a challenging year. We stopped business in Russia, which was 8% of our Marketplace sales, our third largest market. And China went into a negative territory, which was a widespread phenomenon in the luxury industry. And therefore, I think what we're seeing is strength in terms of our core business outside the U.S. and China, the core business is growing double digits. In the Americas, we grew 20%, excluding U.S. In EMEA, we grew double digits with some markets in Southern Europe growing faster than 20%.

當然，2022 年是充滿挑戰的一年。我們停止了在俄羅斯的業務，俄羅斯占我們市場銷售額的 8%，是我們第三大市場。中國市場則陷入了負成長，這是奢侈品產業的普遍現象。因此，我認為我們看到的是我們在美國和中國以外的核心業務的實力，核心業務正在實現兩位數的成長。在美洲（美國除外），我們的成長了 20%。

Overall, even including the U.S. and China, we grew customers 7%, others 9%. We grew supply, which is a supply that brands and boutiques make available curated luxury supply on our platform by 40%, 4-0, year-on-year. These are all absolutely demonstrative our very strong competitive advantages, which will continue to drive market share capture over the next 3 years. And with the decisive actions we've taken in terms of the cost and the fixed cost base in a much stronger profile in terms of profitability as well.

總體而言，即使包括美國和中國，我們的客戶數量也增加了 7%，其他客戶數量增加了 9%。我們的供應量（即品牌和精品店在我們的平台上提供的精選奢侈品供應量）同比增長了 40%，達到 4-0。這些都充分證明了我們非常強大的競爭優勢，並將在未來3年繼續推動市場佔有率的提升。我們在成本和固定成本基礎方面採取了果斷的行動，在獲利能力方面也取得了更大的進步。

Our next question comes from Ashley Helgans from Jefferies.

下一個問題來自 Jefferies 的 Ashley Helgans。

I just wanted to touch on the beauty business. There's been a couple of headlines in the press lately that you guys are looking to wind it down. So just any comments there.

我只是想談談美容生意。最近媒體上有幾條頭條新聞說你們正在考慮結束這一進程。所以只是任何評論。

Yes, that was the decision. We -- in face of the current macro environment and in fact, we started this set of decisive actions in 2022, you will remember in 2022, we've done headcount reductions. We've also reorganized the business, redesigned our organization, we strengthened our leadership team with several new executive additions to the team. And this year, we are doubling down on that new paradigm of prioritizing profitability and prioritizing cash flow generation as a nonnegotiable.

是的，這就是決定。面對當前的宏觀環境，事實上，我們在 2022 年就開始了這一系列果斷行動，你會記得，在 2022 年，我們已經進行了裁員。我們也重組了業務，重新設計了組織機構，並透過增加幾位新主管來加強我們的領導團隊。今年，我們將加倍強調這一新模式，即優先考慮盈利能力和優先考慮現金流創造，並將其作為不可協商的事項。

Beauty was a decision based on that new approach. We have been incredibly successful at category expansion. I just want to remind everyone who's listening to this call. We have the largest menswear luxury destination in the world. We are the largest kids luxury destination in the world, a category, we started from 0 just a few years ago. We are -- we have a very healthy and profitable and fast-growing high luxury category. We've recently announced sales of watches about $2.5 million, fine jewelry sets for $1 million. So we're really servicing the high jewelry category in an incredible way. We're adding to that with Richemont partnership with Cartier, Van Cleef and all the watch brands joining our Marketplace, obviously, as soon as the deal completes and we do the necessary integrations.

美麗是基於這種新方法所做的決定。我們在品類擴展方面取得了令人難以置信的成功。我只是想提醒所有收聽這次電話會議的人。我們擁有世界上最大的男裝奢侈品購物勝地。我們是世界上最大的兒童豪華目的地，這個類別，我們幾年前從 0 開始起步。我們擁有非常健康、有獲利且快速成長的高端奢侈品類別。我們最近宣布手錶的銷售額約為 250 萬美元，精美珠寶套裝的銷售額為 100 萬美元。因此，我們確實以令人難以置信的方式為高級珠寶類別提供服務。我們也與歷峰集團合作，將卡地亞、梵克雅寶和所有加入我們市場的手錶品牌納入其中，顯然，一旦交易完成，我們就會進行必要的整合。

So we have to make strategic decisions here. And when we have categories, which are paying off and categories such as high luxury with incredibly high AOVs and higher profitability, versus investing the same dollars in beauty, which has a lower -- obviously lower AOV and more challenging profitability and unit economics. It was a decision that we've made. It was, in my view, absolutely the right decision to discontinue the beauty category on the Marketplace to focus on all the other categories, which we have launched and where we're seeing a lot of success.

所以我們必須在這裡做出戰略決策。當我們擁有一些能帶來回報的類別，例如高級奢侈品等類別時，它們的 AOV 極高，盈利能力也更高，而將同樣的錢投資在美容產品上，其 AOV 顯然較低，盈利能力和單位經濟效益也更具挑戰性。這是我們所做的決定。在我看來，停止在市場上推出美容類別並專注於我們已經推出的所有其他類別並且取得了巨大成功，這是絕對正確的決定。

Our next question comes from Stephen Ju at Credit Suisse.

下一個問題來自瑞士信貸的 Stephen Ju。

Great. So José, I guess, more of a very big picture question. So I think one of the bullet points in the release was highlighting your supply growth of 40% year-over-year, but your active customers grew, I believe, 7% and order growth was around a similar amount. So maybe these latter 2 metrics are a horrible proxy for demand growth, but this also, at the same time, makes us worry about what might be rising in balance between supply and demand on your Marketplace, particularly as you've turned off demand (inaudible) spend in the U.S.

偉大的。所以，我猜，何塞的問題更偏向宏觀層面。因此，我認為新聞稿中的一個要點是強調您的供應量同比增長了 40％，但您的活躍客戶增長了 7％，訂單增長率也大致相同。因此，也許後兩個指標是需求成長的一個糟糕的代表，但同時，這也讓我們擔心您的市場供需平衡可能會出現問題，特別是當您已經關閉了美國的需求（聽不清楚）支出時。

So can you talk about whether you feel like Farfetch is still a materially better channel for brands as well as retailers to market the merchandise. Or is this demand something that we should be thinking about and worry about for the future?

那麼您能否談談您是否認為 Farfetch 仍然是品牌和零售商行銷商品的更好的管道。或者說這種需求是我們應該為未來思考和擔憂的事情？

Thank you. It's a really good question and allows me to talk about the strengths of the Farfetch business model. Farfetch is unique in the luxury industry. When you don't -- you really don't see the luxury industry adopting other marketplaces such as Amazon or Etsy or eBay or other platforms, so this is an industry that remains and penetrated by the giants in terms of the marketplace space. And two, the multi-brand online luxury destinations that compete for eyeballs with us, they're all retailers, are 80%, 90% retailers with a very small component of e-concessions.

謝謝。這是一個非常好的問題，讓我可以談談 Farfetch 商業模式的優點。 Farfetch 在奢侈品產業中獨樹一格。當你不這樣做時——你確實不會看到奢侈品行業採用其他市場，例如亞馬遜、Etsy、eBay 或其他平台，因此從市場空間來看，這個行業仍然被巨頭滲透。其次，與我們爭奪眼球的多品牌線上奢侈品購物網站都是零售商，80% 到 90% 都是零售商，只有很小一部分是電子特許經營。

We're exactly the opposite. We're around 80%, 85% 3P. So this unique marketplace drop-shipping model, which is unique in this industry. This is what brands want. And brands have said it time and time again, they are divesting from wholesale, especially online wholesale and wanting to conduct sales direct-to-consumer in curated, elevated multi-brand platforms such as Farfetch. And this is what's driving the 40%.

我們恰恰相反。我們的 3P 比例大概是 80%、85%。因此，這種獨特的市場直銷模式在該行業中是獨一無二的。這正是品牌想要的。各大品牌已經多次表示，他們正在撤資批發業務，尤其是網路批發，轉而希望在 Farfetch 等精選、高端的多品牌平台上進行直接面向消費者的銷售。這就是推動 40% 成長的因素。

And also because of the drop shipping model, we are connecting to the inventory pipeline, if you want, of the brands for example, with Kering, we've launched a revolutionary integration, where we are now integrated with the carrying distribution centers, which power Brand.com as well as either direct channels in a fully automated way. We already have dozens of integrations with the Kering brands across the group in various ways. This integration is driving part of that 40% growth, for example, but it's really across our top brands. But this means that there is no incremental inventory risk.

而且由於採用直銷模式，我們可以連接到品牌的庫存管道，例如與開雲集團合作，我們推出了一項革命性的整合，我們現在與運輸配送中心整合，以完全自動化的方式為 Brand.com 以及直接管道提供支援。我們已經以各種方式與開雲集團旗下的數十個品牌進行了整合。例如，這種整合推動了 40% 的成長，但實際上它涉及我們的頂級品牌。但這意味著不存在增量庫存風險。

So we're tapping on inventory, which is part of the brand's ecosystem, if you want. And this allows us to scale up very, very fast as the demand ramps back up again. So the fact that the supply is there, means that we have ample supply without taking any inventory risk or burdening our brand partners with inventory risk. We're able as a marketplace to adjust very quickly and boost our revenue and GMV once the macro environment becomes more favorable in some of our key geographies.

所以如果你願意的話，我們正在利用庫存，它是品牌生態系統的一部分。當需求再次回升時，這使我們能夠非常快速地擴大規模。所以，有供應的事實意味著我們有充足的供應，而不需要承擔任何庫存風險，也不會對我們的品牌合作夥伴帶來庫存風險。一旦我們一些主要地區的宏觀環境變得更加有利，我們作為一個市場就能迅速調整併提高我們的收入和 GMV。

Our next question is from Oliver Chen at Cowen.

下一個問題來自 Cowen 的 Oliver Chen。

Elliot, it's has been great working with you. Regarding the Brand Platform, what's ahead with inventory management and inventory relative to sales? And how should we think about merchandise margins and promotions there, given less than expected revenues there? And on the Digital Platform order contribution margins, what -- how are you thinking about demand generation and also the headwinds as we model that going forward?

艾略特，與您合作非常愉快。關於品牌平台，庫存管理和庫存相對於銷售的前景如何？那麼，考慮到那裡的收入低於預期，我們應該如何看待那裡的商品利潤和促銷活動？關於數位平台訂單貢獻利潤率，您如何看待需求產生以及我們未來建模時的阻力？

Oliver, thanks very much. It's been a pleasure to work with all the analysts as well. Just diving into your questions. So on the Brand Platform, there's a couple of things happening here. Obviously, the delayed shipments from Q2 going into the second half has had an impact on revenue, a flow-through down to profitability and, of course, on our inventory balance at the end of June, which is higher than that would have been had we shipped those orders.

奧利佛，非常感謝。與所有分析師一起工作也是一件愉快的事。只要深入探討你的問題。因此，在品牌平台上，發生了幾件事。顯然，從第二季到下半年的延遲出貨對收入產生了影響，從而影響了盈利能力，當然也影響了我們 6 月底的庫存餘額，我們的庫存餘額比我們發貨這些訂單時的庫存餘額要高。

So once those orders clear through across the Q3, we would expect that balance to come down, plus also as we ramp up our sales for Reebok, the initial inventory that we brought in as part of the handover from the previous operators of Reebok, we'll start to sell through that inventory and push through shipments of that inventory, bringing down the balance. Also, that's on hand at the end of June as that position starts to build.

因此，一旦這些訂單在第三季度完成，我們預計餘額將會下降，此外，隨著我們提高銳步的銷量，我們從之前的銳步運營商移交後帶來的初始庫存，我們將開始銷售這些庫存，並推動這些庫存的出貨，從而降低餘額。此外，隨著該職位開始建立，到 6 月底該職位就會到位。

On top of that, we are having to do a little bit of additional provisioning and clearance. And you can see that in the adjusted guidance with the gross margins for the Brand Platform having now come down. We are expecting those -- that position now to be that sort of 46% to 48% gross margin versus the 49% we delivered last year. So that is already factored in our forecast in terms of the profitability of the Brand Platform.

除此之外，我們還必須做一些額外的配置和清理工作。您可以在調整後的指引中看到，品牌平台的毛利率現已下降。我們預計，目前的毛利率為 46% 至 48%，而去年的毛利率為 49%。因此，我們在預測品牌平台的獲利能力時已經考慮到了這一點。

The expectation is that, that balance of inventory will be significantly reduced as we trade into the end of the year, which obviously helps drive some of the working capital benefit that you see in the forecast for the second half as well. So all sort of points to much tighter inventory going into next year. Obviously, with the reduction in expected orders for the Brand Platform, we are also producing less and getting factories to produce less as we start to fulfill those orders going into next year. So that again helps bring our inventory position down by December.

預計，隨著年底的到來，庫存餘額將大幅減少，這顯然有助於推動您在下半年預測中看到的一些營運資本利得。種種跡象表明，明年庫存將更加緊張。顯然，隨著品牌平台預期訂單的減少，我們在明年開始履行這些訂單時，產量也會減少，工廠的產量也會減少。因此這再次幫助我們在 12 月之前降低庫存水準。

In terms of the Digital Platform, still very pleased with the overall position of order contribution margins there, just down 50 basis points year-on-year. And for the full year expectations, we are maintaining guidance there of 33% to 35% order contribution margin, which will be a step up from 32% last year. And that is down to savings within demand generation. We're becoming significantly more efficient within our demand generation engine. We have pulled back, of course, as you would expect, in the 2 markets that we're seeing broader macro challenges. So in the U.S. and China, we continue to retreat in terms of spend. That drives efficiency in our ability to deploy money elsewhere.

就數位平台而言，我們對訂單貢獻利潤率的整體狀況仍然非常滿意，同比僅下降了 50 個基點。對於全年預期，我們維持 33% 至 35% 的訂單貢獻利潤率指引，較去年的 32% 有所上升。這是由於需求產生中的節省。我們的需求產生引擎的效率顯著提高。當然，正如您所預料的那樣，我們在面臨更廣泛宏觀挑戰的兩個市場中已經撤退。因此，在美國和中國，我們的支出持續減少。這提高了我們在其他地方部署資金的效率。

And demand generation for Q2 just gone, you saw that number come down by $4 million on an absolute basis despite the fact that the GMV on the Digital Platform was up 7%. And for the rest of the year, we're expecting this sort of 7.5% of GMV level, which is what we achieved in Q2 to carry on, which means a saving versus last year. Last year, the demand generation was 7.8% and of GMV. So we're driving this 10% growth for the full year with a lower level of demand generation spend as a percentage of GMV, which is coming through from the efficiencies.

而剛剛過去的第二季的需求生成，你會看到，儘管數位平台上的 GMV 成長了 7%，但這一數字在絕對基礎上下降了 400 萬美元。今年剩餘時間的表現，我們預計 GMV 水準將維持在第二季取得的 7.5% 左右，這意味著與去年相比有所節省。去年，需求產生佔 GMV 的 7.8%。因此，我們以較低的需求產生支出佔 GMV 的百分比來推動全年 10% 的成長，這是透過提高效率來實現的。

The offset here, of course, is the first-party gross margins. Again, that's under pressure year-on-year in Q2 as we clear through some inventory. We're starting to see that improve towards the back end of the year, and it helps drive up our overall order contribution margin.

當然，這裡的抵銷是第一方毛利率。由於我們清理了一些庫存，第二季的年比壓力再次顯現。我們開始看到這種情況在年底有所改善，並有助於提高我們的整體訂單貢獻利潤率。

And then lastly, as the clients on Farfetch Platform Solutions ramp up Ferragamo already live, Bergdorf Goodman coming later this year. Of course, that product, the business-to-business product runs at a higher gross margin, and a higher order contribution margin on the Digital Platform, driving that 33% to 35% overall for the full year. So very confident in those numbers.

最後，隨著 Farfetch 平台解決方案客戶對 Ferragamo 的青睞，Bergdorf Goodman 也將在今年稍後上線。當然，該產品，即B2B產品的毛利率更高，數位平台上的訂單貢獻利潤率也更高，推動全年整體利潤率達到 33% 至 35%。我對這些數字非常有信心。

Our next question is from Ed Yruma at Piper Sandler.

我們的下一個問題來自 Piper Sandler 的 Ed Yruma。

Two for me first. I guess, on Off-White, kind of any comments on the performance of the brand, the health of the brand, now that we're a couple of years past the untimely passing. And then just as a follow-up on YNAP. I know that there is a mechanism to reduce the dilution from the transaction? I guess given that the stock is at a very different point and when the transaction is announced, does that still hold? Is there a certain time that deal needs to be closed by to make sure that those mechanisms hold in place?

對我來說首先是兩個。我想，關於 Off-White，對於該品牌的表現、品牌的健康狀況，有什麼評論嗎？然後只是對 YNAP 進行後續跟進。我知道有一種機制可以減少交易帶來的稀釋嗎？我想，考慮到股票處於非常不同的點位以及交易宣布的時間，這種說法仍然成立嗎？是否需要在特定時間之前完成交易以確保這些機制能夠實施？

Yes. I'll take both questions. We don't break out performance on the brand by brand, but the consumer demand around Off-white and Palm Angels remains very strong. What we see is 2 different pictures in terms of wholesale versus direct-to-consumer, so wholesale always overshoot in both directions. So we saw a very fast expansion of our wholesale business, as we said, 20% CAGR from '18 to '22.

是的。我將回答這兩個問題。我們沒有逐個品牌公佈業績，但 Off-white 和 Palm Angels 的消費者需求仍然強勁。我們看到的是批發和直接面向消費者的兩種不同情況，因此批發在兩個方向上總是超出預期。因此，我們的批發業務擴張非常迅速，正如我們所說，從18年到22年的複合年增長率為20%。

The brands are very popular in the U.S. and in the U.K. So we have great customers in the American departmental stores and also boutiques in the U.K. and Europe. And with the macro headwinds hitting U.S. department stores and U.K., naturally, these customers are reducing their orders across the entire luxury spectrum. And you saw this in multiple commentary from practically all 3 luxury players in terms of the health of the wholesale segment, especially in the U.S. but also in the U.K.

這些品牌在美國和英國非常受歡迎。隨著宏觀逆風襲擊美國百貨公司和英國，這些客戶自然而然地減少了整個奢侈品領域的訂單。幾乎從三大奢侈品牌對批發市場健康狀況的評論中你都能看到這一點，尤其是在美國，但在英國也是如此。

So if you look at direct to consumer, the in aggregate, the NGG direct-to-consumer digital sales are up double digits. And I think this shows that there are 2 stories here. There's 1 story in terms of the consumer appetite for these brands, which remains strong. They continue to be in the list of top our rents. And also the new direction has been evolving with ecomera now firmly installed as Creative Director activating his community, obviously Palm Angels nothing changes, we have Francesco Ragazzi and Stefano who created a brand really from scratch to what is one of the success stories in past years.

因此，如果您看直接面向消費者的銷售額，總體而言，NGG 直接面向消費者的數位銷售額成長了兩位數。我認為這表明這裡有兩個故事。就消費者對這些品牌的興趣而言，有一個故事，那就是興趣依然強勁。他們繼續名列我們租金排行榜前列。此外，隨著 ecomera 正式擔任創意總監並活躍於其社區，新的方向也在不斷發展，顯然 Palm Angels 沒有任何變化，我們有 Francesco Ragazzi 和 Stefano，他們真正從零開始創建了一個品牌，成為過去幾年的成功案例之一。

So the portfolio is very strong. Reebok, we're very excited with Reebok. We did a small preview of Reebok luxury collections to some luxury boutiques this summer and was extremely well received. This is a brand that hasn't done anything really in the premium space. So it's greenfield and -- is greenfield for 2024 and beyond. And NGG with Cristiano, having been over 20 years at Nike in their premium luxury, Nike collaboration department and now over 3 years at NGG, he's the right guy to really make Reebok make sneaker history here.

因此，我們的投資組合非常強大。銳步，我們對銳步感到非常興奮。今年夏天，我們在一些奢侈品精品店對銳步奢侈品系列進行了小規模預覽，並獲得了熱烈的反響。這個品牌在高端領域尚未取得任何實質進展。所以它是綠地，而且 2024 年及以後都是綠地。 NGG 的克里斯蒂亞諾曾在耐吉的高端奢侈品和耐吉合作部門工作了 20 多年，現在又在 NGG 工作了 3 年多，他是讓銳步在這裡創造運動鞋歷史的合適人選。

And therefore, we remain very confident over the long-term plans for NGG and for the Brand Platform. And we're going to navigate this very short-term in the case of Reebok, one-off transition issues from adidas and in the case of Off-White, Palm Angels and other brands really a wholesale headwind, which we were always -- we always say that the future of the brands is more direct-to-consumer than wholesale. So our focus is really on ongoing direct consumer precisely because wholesale always has these movements of overshooting in one direction and another. So this continues to be the strategic direction for the group.

因此，我們對 NGG 和品牌平台的長期計劃仍然非常有信心。我們將在短期內解決銳步與阿迪達斯的一次性過渡問題，以及 Off-White、Palm Angels 和其他品牌在批發方面面臨的阻力，我們一直都說，品牌的未來是直接面向消費者，而不是批發。因此，我們的重點確實是持續的直接消費者，因為批發總是會朝一個方向和另一個方向出現超調的走勢。因此這仍然是該集團的戰略方向。

On YNAP, I can absolutely confirm the share price has -- and the share count has been fixed. So we don't have any extra dilution and it's around 11% of dilution for Farfetch for 47.5% of share capital at YNAP, that's what's been -- that's what's on the deal, and that's what's going to be executed independently of where the share price is as soon as we get regulatory approval.

關於 YNAP，我可以完全確認股價已經——而且股票數量已經固定。因此，我們沒有任何額外的稀釋，Farfetch 的稀釋度約為 11%，而 YNAP 的股本為 47.5%，這就是交易的內容，一旦我們獲得監管部門的批准，這將獨立於股價水準執行。

And of course, you have other guardrails in this transaction in terms of the ability to -- the option to require the remaining of the company over 5 years with the requirement for the company to be profitable for full consolidation in terms of a (inaudible) year and 5. So those strong guardrails absolutely remain in place.

當然，在這筆交易中，你還有其他的保護措施，例如可以選擇要求公司在 5 年內剩餘的時間裡盈利，並且要求公司在 1 年零 5 年內實現全面合併。

We think this is a great partnership, and we're very excited with launching -- re-platforming, not just NET-A-PORTER but also cartier.com, which are going to be the 2 first launches where the teams are working around the cloud, building these great new platforms for these flagship brands. And after that, we'll continue with the rest of the Richemont and YNAP portfolios, which obviously, this time next year means that Farfetch -- the Farfetch platform will power the largest online destination in luxury. That's Farfetch. The second largest online destination in luxury, that's YNAP, 1 of the 3 largest luxury conglomerates in the world that's Richemont and 2 of the most iconic luxury department stores in the U.S. and Europe as Harrods and Bergdorf Goodman. So this is an incredible roster of clients for best-in-class luxury SaaS platform, and that's what we're excited to be delivering against.

我們認為這是一次很棒的合作，我們對此次重新平台化的發布感到非常興奮，不僅是 NET-A-PORTER，還有 cartier.com，這將是團隊圍繞雲端開展工作、為這些旗艦品牌構建這些偉大的新平台的首次發布。之後，我們將繼續合作歷峰集團和 YNAP 的其他產品組合，顯然，明年這個時候意味著 Farfetch——Farfetch 平台將為最大的奢侈品線上目的地提供支援。這就是 Farfetch。奢侈品第二大線上購物目的地是 YNAP，全球三大奢侈品集團之一的歷峰集團，以及美國和歐洲兩大最具代表性的奢侈品百貨公司哈羅德百貨和波道夫·古德曼百貨。對於一流的奢華 SaaS 平台來說，這是一個令人難以置信的客戶名單，我們很高興能夠實現這一目標。

Thanks, everybody. That's time on the call. So we'll have to wrap up there. Thanks for joining the call, and it's a pleasure to hand over to Tim, who will be with Jose next time. So for me, it's good evening, good afternoon, and good night.

謝謝大家。通話時間就是這樣的。所以我們必須就此結束。感謝您加入電話會議，我很高興將電話交給 Tim，下次他將與 Jose 一起通話。所以對我來說，就是晚上好、下午好、晚安。