Farfetch (FTCH, $22.62) has wider-than-anticipated loss for Q1, amidst revenue beat and new developments

Farfetch shares lost more than -10% Thursday, after the online luxury fashion retailer reported wider-than-expected loss for the first-quarter. 

The company incurred an adjusted loss of -22 cents per share, worse than analysts’ anticipated -14 cents per share loss.

However, revenue of $174.1 million came in higher than analysts’ estimates of $171.1 million. The figure also marked a +39% climb year-over-year .

CEO Jose Neves mentioned launch of the Augmented Retail pilot in Chanel's new Paris boutique, and the entry of Farfetch on JD.com's platform as significant developments for the company in recent times.

Despite the lower-than-expected earnings performance of Farfetch in the latest quarter reported, several investment bank analysts did not budge from their outlook. JP Morgan maintained its overweight rating and $30 price target on the stock, while analysts at Wells Fargo also reaffirmed their outperform rating and $32 price target.  

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Sergey Savastiouk|Expert

Sergey Savastiouk, Ph.D. has a degree in Applied Mathematics from Moscow University and has extensive experience as an entrepreneur, investor, manager, and mathematician. His professional expertise is in applied mathematics, mathematical modeling, system and pattern analysis, and software and hardware system integration. He has served as the CEO of several hi-tech start-up companies and nonprofit organizations, which has given him proven capabilities in business strategy for high-tech start-up companies, market assessment, company formation, team building, product development, marketing, and sales. He has published numerous articles in journals and magazines on related fields. As a retail investor, he spent 15 years developing his proprietary trading and quantitative algorithms (now Tickeron’s A.I.), which brought him significant returns in trading the stock market. His current work and goal in founding Tickeron is to bring professional, sophisticated stock market analysis capabilities to retail investors via an easy-to-use interface.