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Farfetch Ltd Class A - Stock Quote FTCH

Rating as of

Morningstar's Farfetch Ltd Class A Stock Analysis

Valuation
Currency in USD
Is it the right time to buy or sell?
Is it the right time to buy or sell?

1-Star Price

INVESTOR

5-Star Price

INVESTOR

Economic Moat

INVESTOR

Capital Allocation

INVESTOR

Farfetch Reduces Outlook, Focuses on Financial Prudence; Shares Undervalued

Jelena Sokolova, CFA Senior Equity Analyst

Analyst Note

| Jelena Sokolova, CFA |

We expect to reduce our fair value estimate for no-moat Farfetch by a high-single-digit percentage as the company cut its outlook for the year after reporting weak first-quarter results. Although our models already incorporated significantly lower growth than management’s previous targets (digital platform gross merchandize value, or GMV, growth of 28% to 32% versus our 20% projections, and brand platform GMV growth of 20%-25% versus 10% we forecast), current guidance for 5%-10% growth in digital platform GMV and brand platform GMV growth of 10%-15% is even more conservative than what we expected. We still see shares as attractive, trading in deep 5-star territory.

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Farfetch Ltd Class A's Company Profile

Business Description

Farfetch is an online platform connecting sellers and buyers of personal luxury goods. It was founded in 2008. The company partners with over 1,000 luxury goods sellers to offer their inventory on the platform. When making the retailers' stock available to almost a million active customers, the company charges a cut of around 30% (third-party take rate). Geographically, Europe, the Middle East, and Africa account for 37% of the company’s sales, the Asia-Pacific 36%, and the Americas 27%. The company operates digital marketplace platform Farfetch, Browns stores and acquired branded company New Guard Group.

Contact
The Bower, 211 Old Street
London, EC1V 9NR, United Kingdom
T +44 2075495400
Sector Consumer Cyclical
Industry Internet Retail
Most Recent Earnings Mar 31, 2022
Fiscal Year End Dec 31, 2022
Stock Type
Employees 6,464

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