KeyBanc Capital Markets analysts downgraded shares of the e-commerce company for luxury fashion to Sector Weight from Overweight.
Shares of Farfetch were tumbling after the e-commerce company for luxury fashion posted mixed results and lowered its forecast of the value of orders processed.
Following the second-quarter report, issued Thursday, KeyBanc Capital Markets analysts downgraded shares of Farfetch to Sector Weight from Overweight “based on decreased confidence in execution and the timeline to profitability.”Farfetch posted second-quarter revenue of $572.1 million, falling from a year ago and landing far below Wall Street’s call for $648.7 million.
“Our Q2 results show Farfetch is growing, becoming more efficient, and executing on our key strategic priorities,” said CEO José Neves in the earnings release. “We have also taken decisive action to adapt to the macro environment of the last 18 months.” The company slashed its full-year guidance for group gross merchandise value, or the total dollar value of orders processed, to $4.4 billion from $4.9 billion.
“Though we view cost rationalization initiatives positively, we think reduced guidance implies a fairly tough 2H hurdle given softer trends,” the KeyBanc analysts wrote.
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