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Farfetch's Luxury Fashion Slump

Farfetch's Luxury Fashion Slump

Today is Friday, August 18, 2023.

The Early Bird Index today is 54.22.

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Farfetch's Luxury Fashion Slump

The luxury fashion platform Farfetch (NYSE: FTCH) dropped 36.76% in after-hours trading on Thursday after the company reported disappointing financial results.

Financials: Farfetch reported a loss of 21 cents per share in the past quarter, which was better than expected. But revenue was below estimates at $572 million.

Details: Revenue and gross profit are both down year-over-year. The brand platform's gross merchandise volume also declined.

Powering the Story: The problem is that customer demand for luxury goods in both the United States and China has plummeted.

Outlook: The company expects revenue of $2.5 billion for the full year, which was below estimates.

Stock Price: Farfetch is up nearly 8% this year, but is down 20% in the last 30 days.

Final Thoughts: Last quarter, Farfetch reported strong results, but now the stock is struggling. Last week, Farfetch closed its beauty business. This is not a good time to be in the luxury goods industry.

Notables

Notable Earnings Today: Deere (NYSE: DE), Palo Alto Networks (Nasdaq: PANW), Buckle (NYSEL BKE), Madison Square Garden Entertainment (NYSE: MSGE), Estee Lauder (NYSE: EL), XPeng (XPEV), Vipshop (NYSE: VIPS), Ci&T (NYSE: CINT).

Notable IPOs Today: Able View Global Inc. Class B Ordinary Shares (Nasdaq: ABLV), 99 Acquisition Group Inc. Unit (Nasdaq: NNAGU), Gladstone Capital Corporation 7.75% Notes due 2028 (Nasdaq: GLADZ), Conifer Holdings, Inc. 9.75% Senior Unsecured Notes due 2028 (Nasdaq: CNFRZ).

Notable Equity Crowdfunding Campaigns Ending Today: Que Concha (SMBX), Baton Roux (Honeycomb), Dome Audio (PicMii), ReDisco Corporation, Inc. (TruCrowd), Twelve78 Brewing (Mainvest), Honey & Hops Brew Works (Mainvest), Boston Fiber Company (Mainvest).

Notable Economic Events Today: N/A.

XRP Faces More Challenges

Photo by Kanchanara / Unsplash

The good times for XRP didn’t last forever as the price of the cryptocurrency dropped by over 17% on Thursday.

Details: The reason XRP declined so much (and so quickly) on Thursday is because of a new decision that said that U.S. government regulators could continue its securities action against Ripple, the network behind XRP.

Bigger Picture: The news was so destructive that other crypto prices plummeted on Thursday afternoon.

Price: While XRP is up about 50% overall in 2023, the price is now down 24% in the last 30 days.

Final Thoughts: Last month’s federal ruling was great for XRP, but now it seems that the backlash from the government is driving fear in XRP investors.

Good Earnings for Applied Materials

Applied Materials (Nasdaq: AMAT) reported better-than-expected financial results, causing shares of the semiconductor company to jump by 2.41% in after-hours trading on Thursday.

Financials: Applied Materials reported earnings of $1.90 per share in the past quarter and revenue of $6.43 billion; both were better than expected.

Final Thoughts: The stock is up 42% in 2023. Applied Materials is benefiting from the positive environment for semiconductors and AI.