Farfetch Limited (FTCH) stock tumbled down aftermarket, decreasing by 22.02%, while it gained 1.06% at its close on November 18. The stock went down to $35.55 from its closing value of $45.59. The after hours’ volume on November 18, was 2.16 million, against an active trading volume of 7.69 million. While the 65-day average volume has been 4.3 million. Intraday trading the stock saw a high of $45.87 and a low of $44.00. Over the last five days, FTCH saw a gain of 15.68%, while it lost 28.55% year to date. Furthermore, the stock’s current market capital is $16.74 billion with 328.25 million shares outstanding.
The aftermarket fall in the stock happened after Q3 earnings were announced and the company’s sales missed the consensus estimates.
Founded in 2007, Farfetch Limited (FTCH) engages in the provision of technology platforms for the luxury fashion industry. The company operates through multiple segments including the Digital platform, Brand platform, and In-Store.
FTCH’s Third Quarter Earnings
Farfetch Limited (FTCH) announced its third-quarter 2021, financial results on November 18, 2021. As per the results, in the third quarter of 2021, revenue was $582.57 million, while it was $386.78 million in Q3 2020. While the Q3 revenue grew by 33% year over year, it missed the consensus estimate by 2.64%. The increase in revenue was basically due to growth in Digital Platform revenue and Brand Platform revenue. The revenues showed a respective growth of 26.5% and 47.2% year over year.
In addition, the loss per diluted share for the third quarter of 2021, was $0.25, compared to $0.50 for Q3 2020. The loss per share beat the consensus estimate of $0.43 for the third quarter of 2021, showing a surprise of 41.86%.
Recent Developments
According to reports on November 18, two Law firms announced their investigation into Farfetch Limited (FTCH). The law firms investigating the company are The Schall Law Firm and Labaton Sucharow. Both the national shareholder rights firms are investigating FTCH for potential securities violations and breach of fiduciary duty. Subsequently, both the firms asked investors to contact them, if they purchase FTCH’s securities between March 22 and 29, 2021.
FTCH’s Future Outlook
Farfetch Limited (FTCH) provided its fourth quarter and full-year 2021, outlook along with its Q3 earnings. For Q4 2021, FTCH expects Digital Platform GMV to grow 18% year over year and the Brand Platform by 25% year over year. The company also expects an adjusted EBITDA of $40 million approximately.
Further, for the full year 2021, the company expects approximate growth of 33% in the Digital Platform GMV. Also, the adjusted EBITDA is expected to approx. $5 million for 2021.
