The concept of the company Farfetch LimitedNYSE: FTCH) depreciation 10.28% in the premarket on Friday after failing to wait for Q3 and cut the forecast.
The online fashion retailer reported a loss of $0.24 for the third quarter, $0.04 higher than expected, while an increase of 1.9% in revenue from the previous year to $593.36M also missed a bit. Gross Merchandise Value fell 4.9% year-over-year to $967.3M, which the company said was largely impacted by currency fluctuations. Analysts had expected $1.03B.
Going forward, the company expects Digital Platform GMV to decline by 5% to 7% per year, Brand Platform GMV by more and a Targeting Adjusted EBITDA margin of (3)% to (5)%
“In the current environment around the world, we are seeing an increase in the price of digital products in the economy, especially in the US and the reports of high quality products that show that we are going to the advertising space,” explained CFO Jose Neves. . “We have made a wise decision to prioritize profitability over growth in these advertising markets, which is reflected in our guidance for the full year 2022.”
Check the details of the results.