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Should You Buy the Dip in Farfetch?

Published 11/24/2021, 02:35 PM
Updated 11/24/2021, 03:30 PM
© Reuters.  Should You Buy the Dip in Farfetch?

Shares of luxury fashion retailer Farfetch (NYSE:FTCH) have declined in price over the past few months. So, is it wise now to buy the stock based on the company’s consistent product and services innovations? Let’s find out.London-based online marketplace Farfetch Limited (FTCH) recently confirmed that it is discussing a potential expansion of its existing Luxury New Retail strategic partnership with Richemont. The company also reported revenues of $582.63 million and an adjusted loss per share of $0.14 for its fiscal third quarter, ended September 30, 2021.

While the company missed the consensus revenue estimate by 1.5%, it beat the consensus EPS estimate by 11.1%. FTCH also trimmed its full-year growth forecast for its Digital Platform GMV from 35%-40% to 33% year-over-year.

The stock has lost 12.9% in price over the past month and 47.5% over the past nine months to close yesterday’s trading session at $34.90. In addition, it is currently trading 52.8% below its 52-week high of $73.87, which it hit on February 19, 2021. Furthermore, Apple’s iOS privacy changes, supply chain disruption, and rising input costs make its near-term prospects bleak.

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