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Farfetch Limited (NYSE:FTCH) stock slid 10.28% in Friday’s premarket after falling short of expectations for Q3 and cutting forecasts.
The online fashion retailer reported a $0.24 loss for the third quarter, $0.04 larger than expected, while a 1.9% rise in revenue from the prior year to $593.36M also narrowly missed estimates. Gross Merchandise Value decreased 4.9% year-over-year to $967.3M, which the company said was adversely impacted by currency fluctuations. Analysts had anticipated $1.03B.
Moving forward, the company expects Digital Platform GMV to decline 5% to 7% year-over-year, Brand Platform GMV broadly flat and Targeting Adjusted EBITDA margin of (3)% to (5)%
“In the current global macro environment, we’re seeing continued digital media cost inflation for luxury, especially in the US as well as reports of higher inventories indicating we’re going to be heading to a very promotional environment,” CFO Jose Neves explained. “We’ve made the strategic decision of prioritizing margin profitability over growth in this promotional markets, which is reflected in our revised full-year 2022 guidance.”
Dig into the details of the results.
Image and article originally from seekingalpha.com. Read the original article here.