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Shares of Farfetch Ltd. rallied late Thursday after the company’s third-quarter sales jumped more than 70% and its adjusted quarterly losses were narrower than expected.
Farfetch FTCH, +1.45% said it lost $537 million, or $1.58 a share, in the quarter, compared with a loss of $90 million, or 30 cents a share, in the year-ago quarter.
Adjusted for one-time items, Farfetch lost 17 cents a share, compared with a loss of 20 cents a share a year ago.
Sales rose 71% to $438 million, the luxury fashion platform said.
Analysts polled by FactSet expected an adjusted per-share loss of 27 cents a share on sales of $365 million.
Shares surged 12% in after-hours trading.
“What we are seeing is the acceleration of the secular trend of online adoption in luxury – an industry that is still very underpenetrated,” Chief Executive Jose Neves said in a statement.
For the fourth quarter, Farfetch called for gross merchandise volume between $880 million and $910 million for its digital platform, growth around 40% and a positive Ebitda.
Farfetch said that pandemic-related “uncertainties” could impact its performance and projections, and that it in light of “heightened restrictions” it has closed its retail stores in affected European locations “and will continue to comply as these measures evolve.”
