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Shares of Farfetch (NYSE:FTCH) are trading about 8% higher in pre-market Friday after the online retailer reported better-than-feared results for its fourth quarter.
FTCH reported a loss per share of $0.25 on revenue of $629.2 million. Analysts were expecting a loss per share of $0.34 on revenue of $626.5M. Overall, sales fell 5.5% year-over-year while gross merchandise value (GMV) dropped 12% to $1.14 billion.
“I am proud to report Farfetch adeptly navigated unprecedented macro headwinds throughout 2022 to deliver growth on a constant currency basis, with full year GMV of $4.1 billion. Our performance also means we captured market share on a 3-year stack basis, with GMV nearly doubling since the onset of the COVID-19 pandemic – a truly remarkable accomplishment,” said José Neves, Farfetch Founder, Chairman and CEO.
Farfetch reiterated its full-year guidance for GMV of $4.9B in 2023.
Morgan Stanley analysts believe Farfetch is still a “show-me story,” although on track to become a successful one.
“This is the first quarter in nearly a year that FTCH numbers have stabilized, with the reported quarter as expected and no changes to forward guidance. While FTCH still has much to prove in ’23and the stock remains a show-me story, tonight’s print was a step in the right direction to regaining credibility, and the story remains on track,” the analysts wrote in a note.
Wells Fargo analysts said Farfetch delivered a “messy” Q4 print. However, the analyst remains positive as the “story soon inflects.”
“Another messy print, but it’s hard to ignore what lies ahead. FTCH has been dealing w/ headwinds for 12+ months now, and while the stock has been a material underperformer, we aren’t giving up given we are so close to inflection. With costs being rationalized, revenue headwinds set to abate and new partnerships coming onboard—we see 2023 ending very differently than how it starts,” the analysts said in a client note.
