Farfetch stock rallies 18% after narrower quarterly loss, higher sales

By Claudia Assis

Farfetch keeps full-year GMV guidance intact at $4.9 billion

Shares of Farfetch Ltd. jumped 18% in the extended session Thursday after the luxury fashion company posted a narrower-than-expected adjusted loss for its first quarter and sales that topped expectations.

"Our first-quarter results represent the first step towards achieving our plan for 2023 ... and demonstrate our strong execution in the face of continued macro headwinds," Chief Executive and founder Jose Neves said in a statement.

Farfetch (FTCH) lost $174 million, or 43 cents a share, in the quarter, swinging from earnings of $729 million, or $1.93 a share, in the year-ago quarter. Adjusted for one-time items, Farfetch lost 16 cents a share.

Revenue rose 8% to $556.4 million, the company said. FactSet consensus called for an adjusted loss of 40 cents a share on sales of $513 million.

Farfetch kept its guidance for gross merchandise volume of about $4.9 billion for the year, also above Wall Street expectations of a GMV around $4.8 billion.

Shares of Farfetch have lost more than 45% in the past 12 months, contrasting with an advance of more than 9% for the S&P 500 index .

-Claudia Assis

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05-19-23 0829ET

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