Farfetch (FTCH) Q2 Earnings Report Preview: What To Look For

Adam Hejl /
2022/08/24 5:12 am EDT

Online luxury marketplace Farfetch (NYSE: FTCH) will be announcing earnings results tomorrow after market hours. Here's what to expect.

Last quarter Farfetch reported revenues of $514.8 million, up 6.12% year on year, missing analyst expectations by 8.11%. It was a weak quarter for the company, with a miss of the top line analyst estimates and a slow revenue growth. The company reported 3.82 million active buyers, up 16.8% year on year.

Is Farfetch buy or sell heading into the earnings? Read our full analysis here, it's free.

This quarter analysts are expecting Farfetch's revenue to grow 8.25% year on year to $566.5 million, slowing down from the 43.4% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.25 per share.

Farfetch Total Revenue

Majority of analysts covering the company have reconfirmed their estimates over the last thirty days, suggesting they are expecting the business to stay the course heading into the earnings. The company missed Wall St's revenue estimates three times over the last two years.

Looking at Farfetch's peers in the online marketplace segment, some of them have already reported Q2 earnings results, giving us a hint of what we can expect. Etsy delivered top-line growth of 10.6% year on year, beating analyst estimates by 5.06% and Airbnb reported revenues up 57.5% year on year, missing analyst estimates by 0.04%. Etsy traded up 3.68% on the results, Airbnb was down 10%. Read our full analysis of Etsy's results here and Airbnb's results here.

Investors in the online marketplace segment have had steady hands going into the earnings, with the stocks up on average 0.83% over the last month. Farfetch is up 1.17% during the same time, and is heading into the earnings with analyst price target of $18.5, compared to share price of $8.59.

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The author has no position in any of the stocks mentioned.