Luxury online clothing company Farfetch (FTCH) shares are down more than 10% Thursday after the company reported a wider-than-expected first-quarter loss.
The company reported first-quarter net losses of $10.92 million, or 22 cents per share on an adjusted basis. Meanwhile, revenue jumped 39% year over year to $174.1 million.
Analysts were expecting the company to report net losses of 14 cents per share on revenue of $171.1 million.
"Overall, we are very well-positioned to continue capturing share of the significant opportunity in the online personal luxury goods market," said CEO Jose Neves.
Analysts at JPMorgan called the drop "an overreaction" while maintaining its overweight rating and $30 price target. Meanwhile analysts at Wells Fargo also maintained their outperform rating and $32 price target.
Farfetch was trading at $22.83 Thursday.
"In addition to strong operational execution, we reached some important strategic milestones that position us for continued strong growth in 2020 and beyond. This included launching the Augmented Retail pilot in Chanel's new Paris flagship boutique at 19 Rue Cambon. We are also thrilled to be entering the sneaker resale market, and launching Farfetch on JD.com's platform," Neves said.
Year to date, Farfetch's stock is up more than 26%.