Shares of luxury boutique online sales-platform provider Farfetch (FTCH) - Get Report surged on Friday after the company announced third-quarter sales and fourth-quarter growth projections that beat analysts’ estimates, prompting at least one analyst upgrade.
Shares of Farfetch were up nearly 11% on Friday after the London-based company posted a 71% increase in third-quarter sales, far exceeding analysts’ forecasts.
Farfetch said its third-quarter net loss on an adjusted earnings before interest, taxes, depreciation and amortization basis narrowed to $10.3 million from $35.6 million in the period a year earlier.
Farfetch also projected digital platform gross merchandise value of $880 million to $910 million in the fourth quarter, above analysts’ estimates of $851.3 million.
The better-than-expected results coupled with last week’s $1.1 billion partnership announcement with e-commerce giant Alibaba (BABA) - Get Report and Cartier brand owner Richemont was enough to prompt KeyBanc analyst Edward Yruma to raise his one-year price target on Farfetch shares.
Yruma lifted his price target on Farfetch to $50 from $32 and kept his overweight rating on the shares, noting among other positives that he expects the company to continue to benefit from department stores’ pandemic-driven shift to online sales.
Farfetch, which went public in 2018, initially focused on providing disparate high-end luxury goods sellers to sell and ship designer clothes and accessories. In December 2018, Farfetch acquired online sneaker platform Stadium Goods for $250 million. In February 2019, Farfetch agreed to merge its Chinese business with JD.com (JD) - Get Report.
The company more recently has pivoted to offering its technology to established luxury brands and department stores that want to make the jump to e-commerce.
Shares of Farfetch were up 10.96% at $47.98 in trading on Friday. The stock has more than quadrupled in value this year, more than offsetting its 42% dip in 2019.