Farfetch Limited Shares Plunge 18% Since Q3 Report

Farfetch Limited (NYSE:FTCH) shares fell around 18% since the company’s reported Q3 results on Thursday, which were negatively affected by China headwinds, the strong dollar, and an increased focus on full-price sales, offset by stronger contribution margins.

Q3 EPS came in at ($0.24), worse than the Street estimate of ($0.21). Revenue was $593.4 million, missing the Street estimate of $598.26 million.

The company reduced its full-year guidance and now anticipates digital platform GMV (Gross merchandise value) to drop 5-7% from prior 0-5% growth. Furthermore, management now expects an adjusted EBITDA margin loss of 3%-5%, down from the prior 0%.