FTCH: Farfetch Stumbles on Runway as Luxury Stock Crashes 45% After Q2 Results

Far from a glamorous catwalk show, the luxury fashion platform posted weak Q2 earnings and lowered its full-year forecast.

• Farfetch stock FFTCH erased nearly half of its valuation on Friday after the luxury fashion company delivered a surprise slump in its second-quarter earnings results. Revenue for the company came in at $572.1mn, way below Wall Street estimates of $648.7mn and falling from the year-ago quarter.
• Shares of the company, operating a brand-rich ecommerce platform, crashed 45% to $2.61 a share, landing at a market cap of $920mn. What’s more, Farfetch slashed its full-year guidance for total value of orders processed to $4.4bn from $4.9bn, citing “softer trends” during a “fairly tough H2.”
• To add to the dire situation, analysts at investment firm Wedbush trimmed their price target to $3.50 from $5 and called the company’s Q2 results “very disappointing.” Farfetch stock was strutting down the runway virtually flat all year just before its spectacular fall last week.