Farfetch stock drops more than 20% as sales miss estimates
Shares of Farfetch Ltd. dropped more than 20% in the extended session Thursday after the luxury fashion company missed sales expectations for its third quarter.
Farfetch
FTCH,
+1.06%
said it earned $769 million, or basic per-share earnings of $2.09, in the quarter, swinging from a loss of $537 million, or $1.58 a share, in the year-ago quarter. Adjusted for one-time items, the company lost 14 cents a share.
Revenue rose 33% to $583 million. FactSet consensus called for a loss of 24 cents a share on sales of $591 million.
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The company remains on track to achieve its goal of a full-year adjusted EBITDA and gross merchandise value above its long-term target, founder and Chief Executive Jose Neves said in a statement.
Brands and retailers are listing “more luxury products than ever,” he said.
Farfetch guided for full-year 2021 adjusted EBITDA of about $5 million, and of around $40 million for the fourth quarter. Risks to its performance included “disruptions” to operations, fulfillment, and shipments and increased operation costs, the company said.
Shares of Farfetch rallied late last week after the company confirmed that it was in discussions with Switzerland-based luxury goods maker Compagnie Financiere Richemont SA
CFR,
-0.11%
about an expansion of an existing partnership.
