Why Farfetch Limited Stock Plummeted 40% Today
Shares of Farfetch Limited (NYSE: FTCH) were down 40.5% as of 12:35 p.m. ET Friday, according to data provided by S&P Global Market Intelligence, after the luxury fashion and beauty products retailer posted mixed second-quarter results and discouraging forward guidance.
Farfetch's quarterly revenue declined 1.3% year over year to $572.1 million, falling far short of estimates for revenue closer to $650 million. On the bottom line, that translated to an adjusted net loss of $0.21 per share, roughly flat compared to the same year-ago period and slightly exceeding estimates for a wider loss of $0.23 per share -- though it's worth noting the loss might have been in line with estimates had it met revenue expectations considering Farfetch has yet to achieve sustained, profitable growth.
Underlying those headline numbers, Farfetch's gross merchandise value (GMV) climbed 1.2% (to $1.03 billion), as declines from the Brand Platform segment were offset by growth in its Digital Platform business; Digital Platform GMV was up 7% to $944.3 million, while Digital Platform Services revenue rose 10% to $391.3 million. Active customers also increased 7% to 4.1 million.
Source Fool.com
