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Riding Wall Street's love affair with innovative tech businesses, Farfetch (NYSE: FTCH) saw its stock soar 158% from the start of 2020 to its all-time high in February 2021. It's safe to say that Farfetch has completely fallen out of favor. This digital marketplace business connects 1,400 different fashion brands with customers from over 190 countries -- an impressive feat.
Farfetch's (NYSE: FTCH) stock has surged nearly 40% since the company posted its first-quarter report on May 18. The London-based luxury e-tailer's revenue rose 8% year over year to $556 million and exceeded analysts' estimates by $41 million.
By Remy Blaire Earnings reports from big box retailers pointed to an emerging trend of consumers picking up fewer big-ticket items and easing back on discretionary purchases. Yet, luxury's target demographic isn't pinching pennies. Farfetch Limited (FTCH) reported an increase of 8% in revenue for fiscal Q1 2023. The London-based luxury fashion retailer posted a narrower-than-expected quarterly loss and reiterated its gross merchandise volume outlook for the full-year. Discretionary spending on luxury products for high-end couture brands pushed Farfetch back to growth in the latest quarter. Foot Locker Inc. (FL) couldn’t kick discounting measures and retail shrink to the curb. The sportswear retailer’s shares tumbled with a double-digit percentage loss after weaker-than-expected earnings. The New York-based company reported a sales decline and slashed its guidance for the year. Greater markdowns of its merchandise and loss in inventory due to retail theft weighed on Foot Locker’s bottom line. More U.S. retailers will report earnings ahead of the Memorial Day holiday weekend. Next week, Best Buy Co. Inc. (BBY), Costco Wholesale Corp. (COST), and Lowe’s Cos. (LOW), will report quarterly results and provide greater perspective into consumer spending patterns in the first half of 2023.
Shares of Farfetch (NYSE: FTCH) were moving higher today after the luxury fashion e-commerce marketplace posted better-than-expected results in its first-quarter earnings report, showing the stock is starting to make a recovery after crashing during much of 2021 and 2022. After a surge in demand during the pandemic, Farfetch's growth slowed significantly last year. Gross merchandise value (GMV), or the total value of goods sold on the platform, was up just 0.1%, or 4% in constant-currency terms, to $931.7 million.
Wall Street is keeping a close eye on debt ceiling negotiation updates ahead of the weekend. The major equity averages posted two consecutive sessions of gains, lifting the Nasdaq and S&P 500 to the best weekly performance since March. Fed Reserve Chair Jerome Powell says interest rates may not have to climb as much as expected to keep inflation in check. Powell’s comments come on the heels of recent indicators from Fed officials that the June rate decision could point to more of a cliffhanger than initially anticipated. In a week full of earnings from U.S. retailers that showed a pullback of discretionary consumer spending, Farfetch Limited (NYSE: FTCH) reported an increase of 8% in revenue for fiscal Q1 2023. The London-based luxury fashion retailer posted a narrower-than-expected quarterly loss and reiterated its gross merchandise volume outlook for the full-year. Shares soared above $15 a share in Friday morning trade. Berkshire Hathaway upped its stake in Occidental Petroleum Corp. (NYSE: OXY), raising its total stake above $12 billion to over 20% of the energy producer. At Berkshire’s annual shareholder meeting, Warren Buffett made clear that the Nebraska-based conglomerate has no intention of taking control of the company. Occidental shares hovered right below $60 a share ahead of the weekend.
Yahoo Finance markets contributor Remy Blaire takes a look at stocks to watch, including Occidental Petroleum after Berkshire Hathaway raises its stake in the company, as well as Farfetch Limited.
It has been a good week so far for the stock market, with some major market benchmarks pushing upward to their best levels since last summer. Friday morning appeared as though it might bring further gains, albeit modest ones, as stock index futures generally posted small advances. Deere (NYSE: DE) reported financial results that inspired shareholders to boost the price of the stock somewhat, but Farfetch (NYSE: FTCH) was a much bigger winner as its share price rebounded sharply from recent declines.
(Bloomberg) -- Farfetch Ltd shares jumped as much as 21% in pre-market trading following financial results that beat Wall Street’s expectations, a sign that luxury retail could still be a port in the storm amid a slowdown in discretionary shopping.Most Read from BloombergDisney Closes Florida Star Wars Hotel, Scraps Plan to Move 2,000 EmployeesWall Street Fears $1 Trillion Aftershock From Debt DealMcCarthy Puts Debt-Limit Talks on ‘Pause’ as Clock Ticks DownMorgan Stanley CEO Gorman to Step Down
While the top- and bottom-line numbers for Farfetch Limited (FTCH) give a sense of how the business performed in the quarter ended March 2023, it could be worth looking at how some of its key metrics compare to Wall Street estimates and year-ago values.
Farfetch Limited (FTCH) delivered earnings and revenue surprises of 40.74% and 6.26%, respectively, for the quarter ended March 2023. Do the numbers hold clues to what lies ahead for the stock?
LONDON, May 18, 2023--Farfetch Limited (NYSE: FTCH) ("Farfetch" or the "Company"), the leading global platform for the luxury fashion industry, today reported financial results for the first quarter ended March 31, 2023.
LONDON & MILAN, May 03, 2023--FARFETCH LAUNCHES REEBOK PARTNERSHIP
With the overall stock market still down over the past year but up so far in 2023, and many individual stocks following that same pattern, it looks like a good time to buy into the market's rising enthusiasm. One feature of a typical bull market is that stock valuations can become inflated as confident investors buy stocks and push their prices up beyond a point that seems reasonable. In the market we're in now, valuations are likely to be low and give investors a more grounded sense of the company's stock price as compared with its potential.
Farfetch (NYSE: FTCH) is a specialized player in luxury fashion online retail that's seen its valuation crushed as business performance has worsened and investors have moved away from risky growth stocks. The company's share price has fallen roughly 69% over the last year and trades down approximately 94% from the lifetime high that it hit in February 2021. Jeremy Bowman: Farfetch has been all over the map since its 2018 IPO.
The online-retail specialist's stock move likely had something to do with a recent announcement about its leadership team. Farfetch published a press release Thursday announcing that former TikTok executive Nick Tran will become its new chief marketing officer. While Tran has expertise that suggests he could be a good fit to push Farfetch's brand and service platforms forward, the market may be seeing warning signs about the new hire.
Farfetch Limited's ( NYSE:FTCH ) price-to-earnings (or "P/E") ratio of 4.9x might make it look like a strong buy right...
Massive future-growth opportunities could push these beaten-down stocks to quadruple by the end of the decade.
Analysts believe Etsy offers attractive near-term upside, while Farfetch could more than double from recent lows.
Between its initial public offering in late 2018 to its peak in early 2021, Farfetch (NYSE: FTCH) saw its shares soar 158%, as investor enthusiasm reached ever-increasing levels. What goes up, must come down, however, and Farfetch's shares are down a whopping 94% as of March 24 from their all-time high of $73.75 set in February 2021. Probably the single most favorable characteristic about Farfetch is that it is a platform and marketplace business that focuses solely on luxury goods.
Like some other e-commerce stocks, Farfetch (NYSE: FTCH) soared during the pandemic before crashing over the last two years as the growth story for the e-commerce luxury fashion company seems to have fallen apart. Due to the war in Ukraine, it pulled out of Russia, where 6% of its gross merchandise value (GMV) came from, and the company has struggled in China, its second-biggest market, due to COVID-19 lockdowns. The company has a unique business model that includes an e-commerce marketplace, wholly owned fashion businesses, and a Shopify-like service, Farfetch Platform Services (FPS), which handles the e-commerce side of the business for luxury brands.
Here's why three Motley Fool contributors believe Shopify (NYSE: SHOP), Amazon (NASDAQ: AMZN), and Farfetch (NYSE: FTCH) are no-brainer buys right now. John Ballard (Shopify): Shopify stock crashed with the market sell-off last year, but e-commerce isn't going anywhere. In fact, while the stock was tumbling, Shopify was still growing.
Plenty of issues remain, but this stock could pop higher if the company starts to fix some of those issues.
Three Fool.com contributors think the narrative is in the process of changing for Sea Limited (NYSE: SE), Datadog (NASDAQ: DDOG), and Farfetch (NYSE: FTCH). Nicholas Rossolillo (Sea Limited): It's been a long and difficult road for southeast Asia's leading e-commerce platform Sea Limited. Share prices are down nearly 80% from their all-time high set during the second half of 2021 -- when the digital economy was in bubble territory in the wake of pandemic lockdowns.
With consumers shifting their spending away from goods to services as inflation heated up last year, top apparel brands saw their sales and profits tumble. Shares of VF Corp. (NYSE: VFC) and Farfetch (NYSE: FTCH) are currently trading about 74% and 93% off their all-time highs. VF Corp. had a rough outing last year, with revenue through the first nine months of the year down 2%.