Farfetch Limited (NYSE:FTCH) stock plummeted, losing more than a third, after reporting underwhelming second-quarter revenue.
The London-based luxury brands e-commerce platform posted revenue of $579.34 million, up 1.2% year over year but well behind Street expectations of $649.17 million. Its loss was narrower than expected, at $0.21 per share, versus consensus forecasts of $0.42.
Nevertheless, the market’s reaction was unflinchingly negative with FarFetch stock down some 38% in premarket deals, changing hands at US$2.99 down from Thursday’s close of US$4.76.
“I’m pleased with our second quarter performance, which demonstrates our progress towards delivering profitable growth and positive free cash flow in 2023,” CFO Elliot Jordan said in a statement. “Our Digital Platform has performed particularly well, returning to growth while maintaining a stable order contribution margin. This, coupled with significant savings in the cost base across all areas of the business, means our digital platform is more profitable than last year. We enter the second half well positioned to achieve faster levels of growth, with a lower cost base and strong liquidity.”
Looking ahead, Farfetch projects full-year revenue of approximately $2.5 billion, up from $2.3 billion in 2022.
Contact Andrew Kessel at andrew.kessel@proactiveinvestors.com
Follow him on Twitter @andrew_kessel