Farfetch (FTCH) Poor Results & Guidance Case

S.D. New York

Court

1:24-cv-00532

Case number

03/09/2023

Class period Start

08/17/2023

Class period End

12/19/2023

Lead Plaintiff motion deadline

In August 2023, Farfetch reported poor financial results and cut its 2023 guidance, "pushing" analysts to downgrade it. 
Following this news, $FTCH lost 45% of shareholder value. 
Investor suspects Farfetch's leaders of concealing growth challenges in the U.S. and China, issues supply chain and Reebok collab.
On August 17, 2023, Farfetch announced disappointing Q2 2023 financial results:
Revenue of ~$572 million, significantly less than the market consensus of $650.71 million.  
FY 2023 revenue forecast of ~$2.5 billion, compared to the average analyst estimate of $2.8 billion and $FTCH’s prior FY 2023 revenue forecast of $2.9 billion. 
On a call with investors and analysts, Farfetch's management disclosed that significant slowdowns in growth in the U.S. and China, onboarding challenges affecting the launch of the Reebok partnership, and issues with inventory and shipping had negatively impacted Farfetch’s revenue and GMV for the quarter, as well forced it to rein in expectations for FY 2023. 
Following the poor results and guidance multiple analysts downgraded Farfetch. 
Following this news, $FTCH fell 45%, seriously damaging shareholders.

Taking all representations into account, Investors have reasons to suspect Farfetch's Leaders of concealing growth challenges in the U.S. and China, onboarding issues with the Reebok partnership, understating supply chain difficulties, and consequently, negatively impacting revenue and growth expectations for Q2 2023 and FY 2023.

Case Status

Motion to dismiss

Alleged Offence

Misleading Statements,

Financial Misrepresentation,

Failure to Disclose,

Omissions

Suspected Party

Directors,

Management

Security Type

Stocks

Trade Direction

Long

Shock Event Date

08/18/2023

Filing date

10/20/2023

Lead Plaintiff Deadline

12/19/2023

Judge

Hon. Theodore D Chuang

Farfetch (FTCH) Poor Results & Guidance Case

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