font size
Farfetch had revenue in the second quarter of $572.1 million, while Wall Street expected $648.7 million.
Dream time
shares
farfetch
It was falling after the luxury fashion e-commerce company reported mixed results and cut its forecast for the value of orders processed.
Following its second-quarter report, released Thursday, KeyBanc Capital Markets analysts downgraded Farfetch (trading ticker: FTCH) shares to “sector weight” from “overweight” “based on low confidence in execution and schedule for profitability.”
Farfetch stock fell 40% to $2.84 in pre-market trading on Friday.
farfetch to publish Second-quarter revenue was $572.1 million, down from a year ago and falling below Wall Street’s demand for $648.7 million. It also posted an adjusted loss of 21 cents per share, flat from the year-ago quarter but narrower than the loss analysts had expected of 28 cents.
“Our results for the second quarter demonstrate that Farfetch is growing, becoming more efficient, and delivering on our key strategic priorities,” CEO José Neves said in the earnings release. “We have also taken decisive action to adapt to the macro environment over the past 18 months.”
The company lowered its full-year guidance for the group’s total merchandise value, or the total dollar value of orders processed, to $4.4 billion. from $4.9 billion.
“Although we view the cost optimization initiatives positively, we believe the lower guidance indicates a fairly harsh hurdle in the two hours given the softer trends,” the KeyBanc analysts wrote.
Write to Emily Dattilo at emily.dattilo@dowjones.com
(Tags to translation) Food/Beverage