What To Expect From Farfetch’s (FTCH) Q4 Earnings

Radek Strnad /
2023/02/22 4:23 am EST

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

Last quarter Farfetch reported revenues of $593.4 million, up 1.85% year on year, missing analyst expectations by 0.54%. It was a weak quarter for the company, with slow revenue growth and a miss of the top line analyst estimates. The company reported 3.9 million active buyers, up 8.63% 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 decline 5.92% year on year to $626.3 million, a further deceleration on the 23.2% year-over-year decrease 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 four times over the last two years.

Looking at Farfetch's peers in the consumer internet segment, some of them have already reported Q4 earnings results, giving us a hint of what we can expect. Airbnb delivered top-line growth of 24.1% year on year, beating analyst estimates by 2.22% and Roku reported revenues up 0.2% year on year, exceeding estimates by 8%. Airbnb traded up 9.24% on the results, Roku was up 10.8%. Read our full analysis of Airbnb's results here and Roku's results here.

Investors in the consumer internet segment have had steady hands going into the earnings, with the stocks down on average 0.82% over the last month. Farfetch is down 19.2% during the same time, and is heading into the earnings with analyst price target of $10.8, compared to share price of $5.02.

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