Farfetch’s struggles to attract customers to its luxury marketplace deepened in the second quarter, with its own brands taking the biggest hit.
The e-tailer’s revenue dropped 1% in the second quarter from a year earlier to $572 million, falling well short of the average analyst forecast of $650 million. The company also lowered its sales outlook for the full year by $500 million, to $4.4 billion.
The decline was led by a more than 40% year-on-year slump in sales through its brand incubator platform, New Guards Group, which operates Off-White, Palm Angels and other labels, as well as the European licence for Reebok. Farfetch said that its brands saw lower orders for autumn and winter merchandise at department stores in the US and UK.
Farfetch shares plunged more than 30% in after-hours trading following the release of results, hitting an all-time low.
To read BoF’s full report, head to our #linkinbio.
✍️ Malique Morris
? Courtesy
#FashionNews
The e-tailer’s revenue dropped 1% in the second quarter from a year earlier to $572 million, falling well short of the average analyst forecast of $650 million. The company also lowered its sales outlook for the full year by $500 million, to $4.4 billion.
The decline was led by a more than 40% year-on-year slump in sales through its brand incubator platform, New Guards Group, which operates Off-White, Palm Angels and other labels, as well as the European licence for Reebok. Farfetch said that its brands saw lower orders for autumn and winter merchandise at department stores in the US and UK.
Farfetch shares plunged more than 30% in after-hours trading following the release of results, hitting an all-time low.
To read BoF’s full report, head to our #linkinbio.
✍️ Malique Morris
? Courtesy
#FashionNews
