Sign In
Step 1
Unite with Fellow Investors
Step 2
Choose the Best Attorney
Step 3
Provide Documents
Step 4
Follow Case Progress
Step 5
Get Payout
FTCH.US
id: 854

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
Collecting participants…