Farfetch Shares Fly High As Its Q2 Earnings Firmly Holds The Ground

Farfetch Ltd FTCH reported second-quarter FY22 sales growth of 10.7% year-on-year, to $579.35 million, beating the consensus of $548.03 million.
Gross merchandise value for the quarter (GMV) rose 1.3% Y/Y. Digital platform GMV decreased by 3.3%.
Gross profit for the quarter increased 16.3% Y/Y to $267.6 million, and the margin expanded 220 basis points to 46.2%.
Also Read: Farfetch Pops On Acquiring 47% Stake In Luxury And Fashion Retailer YNAP
Selling, general and administrative expenses rose 14.4% to $435.3 million.
Operating loss for the quarter widened to $(167.6) million. Adjusted EBITDA loss broadened to $(24.2) million.
Adjusted EPS loss of $(0.21) beat the analyst consensus of $(0.31).
The company held $675.2 million in cash and equivalents as of June 30, 2022.
"And while our eyes are fixed on our North Star, our feet remain planted firmly on the ground. We are navigating a volatile macro environment adeptly, continuing to post growth compounding on what has been a tremendous 3-year run for Farfetch, a period that saw our business double as measured by our GMV," said José Neves, Farfetch Founder, Chairman, and CEO.
Outlook: Farfetch sees FY22 GMV growth of 0% - 5% for Digital Platform and 0% - 10% for Digital Platform.
The company targets break-even Adjusted EBITDA for FY22.
FTCH said it is confident about its 2023 top line, profitability, and cash generation.
Price Action: FTCH shares are trading higher by 30.49% at $12.45 on the last check Friday.
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Farfetch Shares Fly High As Its Q2 Earnings Firmly Holds The Ground

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