Farfetch reported strong growth in both revenues and gross merchandise values in what the luxury specialist’s boss called a “tremendous start to 2021”.

The company reported a 46% year-on-year increase in sales to $485m (£344.1m), white adjusted EBITDA losses narrowed to $19m (£13.5m) from $22m (£15.6m) in its first quarter.

Farfetch reported profit after tax of $517m (£367.5m), which included a $660m (£469m) non-cash benefit arising from lower share price impact on items held at fair value and remeasurements.

The retailer said gross merchandise value and digital platform GMV for the period grew 50% and 60% year on year to $916m (£651.2m) and $790m (£561.6m) respectively. 

Chief executive José Neves said: “Farfetch is off to a tremendous start in 2021 with stronger than expected acceleration in the business in the first quarter and higher full-year growth expectations than initially anticipated.  

“Our brand partnerships have never been stronger and our customer- and brand-building initiatives are resonating well to drive awareness of our value proposition and retention of our valuable consumers.  

“I am also very enthused by the positive consumer reaction to our recent launch on Tmall’s Luxury Pavilion and the momentum building behind our Luxury New Retail vision as we see it being adopted by luxury partners around the world. I am more confident than ever in our position to go after the significant growth opportunities we see as a digital enabler of the global luxury industry – a nearly $300bn opportunity, which we remain laser-focused on and plan to continue investing behind to deliver significant value over the long term.”