Farfetch stock rises after company's Q2 sales beat, narrower loss
Shares of Farfetch Ltd. rose more than 4% in the extended session Thursday after the luxury fashion platform reported a narrower-than-expected quarterly loss and sales that surpassed expectations. Farfetch also announced the departure of five board members, including the board's chair. The e-tailer said it lost $95 million, or 31 cents a share, in the second quarter, compared with a loss of $436 million, or $1.29 a share, in the year-ago quarter. Revenue rose 74% to $365 million, the company said. Analysts polled by FactSet had expected a loss of 37 cents a share on sales of $327 million for the quarter. The company called for an adjusted loss between $20 million and $25 million for the third quarter, and said ongoing "uncertainties" in connection with the pandemic "could have material impacts on our future performance and projections." It is on track with an adjusted EBITDA profitability in 2021, it said, and ended the quarter with about $802 million in cash and equivalents, including net proceeds from April 2020 issuance of $400 million in convertible debt. As for the board changes, Farfetch said that five members, including chairperson Natalie Massenet, have left and four new directors have joined the company's board. Shares of Farfetch ended the regular trading day up 1.9%.
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