Why Farfetch Limited Dipped 19.9% Last Month
Shares of Farfetch Limited (NYSE: FTCH) dipped 19.9% last month, according to data provided by S&P Global Market Intelligence. The online luxury fashion marketplace posted disappointing first-quarter earnings and said it is going to continue to be negatively impacted by the shutdown of Western businesses in Russia and COVID-19 lockdowns in China. Shares are down over 80% in the past 12 months.
It is tough to pin down what investors were thinking with Farfetch stock last month. On May 24, shares were down as much as 40% even though there were no business updates from the company. Then, on May 26, Farfetch released its Q1 results, posting revenue of $515 million, which was way below analyst expectations of $560 million. Full-year guidance for gross merchandise volume (GMV, or the dollar amount of goods sold on its platform) was brought down to 5% to 10% year-over-year growth.
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Source Fool.com
