Farfetch's stock drops nearly 50% after company going private in doubt

By Claudia Assis

Farfetch stock drops to record low

Shares of Farfetch Ltd. dropped nearly 50% Wednesday after investors seemed to doubt reports that the luxury fashion e-commerce company would be taken private.

Luxury-goods holding company Richemont on Wednesday said it "does not envisage lending or investing into" Farfetch (FTCH).

Richemont, which owns brands such as Cartier and watchmaker Piaget, is a top shareholder of Farfetch and was reportedly part of talks to help the company go private. The Telegraph, a British newspaper, reported on the talks on Tuesday, and the stock soared.

Farfetch late Tuesday said it was not reporting third-quarter earnings on Wednesday as planned, and that it would update the market on a new date. The stock rallied after market close.

So far this year, however, Farfetch shares have dropped more than 75%, which contrasts with gains of about 19% for the S&P 500 index SPX.

Farfetch went public in 2018 and backers included Richemont as well as China's Alibaba Group Holding Ltd. (BABA)

-Claudia Assis

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11-29-23 1132ET

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