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.