Shares of Farfetch (NYSE:FTCH) gained over 16% in after-hours trading after the company reported earnings for its first quarter of Fiscal Year 2023. Earnings per share came in at -$0.16, which beat analysts’ consensus estimate of -$0.40 per share. Sales increased by 8.1% year-over-year, with revenue hitting $556.39 million. This beat analysts’ expectations of $515.37 million.
Farfetch’s gross merchandise value (GMV) notched up 0.1% against this time last year, reaching $931.7 million. Meanwhile, GMV on its digital platform dropped slightly, down 1% against this time last year, to reach $799.7 million. However, its brand platform saw a huge jump in GMV, reaching $109.7, a 10% jump from the year prior. Finally, both gross profit margin and digital platform order contribution margins slipped, with gross profit margin hitting 43.2% and digital platform reaching 32.4%.
Farfetch management also offered some guidance. It expects group GMV to reach $4.9 billion, digital platform GMV to hit $4.2 billion, and brand platform GMV to hit $600 million.
Overall, Wall Street has a consensus price target of $10.90 on Farfetch, implying 150.57% upside potential, as indicated by the graphic above.
