Lawsuit filed for Investors who lost money with shares of Farfetch Limited (NYSE: FTCH)

An investor, who purchased shares of Farfetch Limited (NYSE: FTCH), filed a lawsuit in the U.S. District Court for the District of Maryland over alleged violations of Federal Securities Laws by Farfetch Limited in connection with certain allegedly false and misleading statements.

Investors who purchased shares of Farfetch Limited (NYSE: FTCH) have certain options and for certain investors are short and strict deadlines running. Deadline: December 19, 2023. NYSE: FTCH investors should contact the Shareholders Foundation at mail@shareholdersfoundation.com or call +1(858) 779 - 1554.

London based Farfetch Limited, together with its subsidiaries, operates a platform for the luxury fashion industry in the United States, the United Kingdom, and internationally.In addition to revenue, one of Farfetch's most important financial metrics is gross merchandise value ("GMV"), which the Company defines as the total dollar value of orders processed, inclusive of product value, shipping, and duty, and net of returns, value added taxes, and cancellations. According to Farfetch, the Company's GMV closely correlates with its revenue.

Farfetch's largest markets include, inter alia, the United States ("U.S.") and the People's Republic of China ("China"). Despite recent softness in those markets, the Company assured investors during the Class Period that, as of the first quarter ("Q1") of 2023, those markets had either recovered or were recovering and were expected to drive future revenue and GMV growth, particularly in the second quarter ("Q2") of 2023.
In May 2023, Farfetch Limited announced the commercial launch of its European partnership with footwear and clothing brand Reebok International Limited ("Reebok"). Reebok's owner, Authentic Brands Group, partnered with Farfetch in 2022 to operate its business in Europe, re-platform its European e-commerce sites, and drive the evolution of the brand by expanding its luxury collaboration offerings globally.

On August 17, 2023, Farfetch Limited announced its Q2 2023 financial results. Among other items, Farfetch reported revenue of approximately $572 million, significantly less than the market consensus of $650.71 million. Farfetch also issued an FY 2023 revenue forecast of approximately $2.5 billion, compared to the average analyst estimate of $2.8 billion and the Company's prior FY 2023 revenue forecast of $2.9 billion.
That same day, Farfetch Limited held a conference call with investors and analysts to discuss the Company's Q2 2023 results. During that call, Company 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 the Company to rein in expectations for FY 2023.
Then, on August 18, 2023, media outlets reported that multiple analysts had downgraded Farfetch based on its poor Q2 2023 results and disappointing guidance for FY 2023.

Shares of Farfetch Limited (NYSE: FTCH) declined from $6.79 per share on July 14, 2023, to as low as $1.54 per share on October 20, 2023.

The plaintiff claims that between March 9, 2023 and August 17, 2023, the Defendants made false and/or misleading statements and/or failed to disclose that Farfetch was experiencing a significant slowdown in growth in the U.S. and China, that Farfetch also faced onboarding challenges impacting the launch of its Reebok partnership, that Farfetch downplayed challenges it faced with respect to, and/or overstated its ability to manage, its supply chain and inventory, that all the foregoing was having a significant negative impact on Farfetch's revenue and GMV growth, that accordingly, Farfetch was unlikely to meet market expectations for its Q2 2023 financial results or its own FY 2023 revenue guidance, and that as a result, the Company's public statements were materially false and misleading at all relevant times.

Those who purchased shares of Farfetch Limited (NYSE: FTCH) have certain options and should contact the Shareholders Foundation.

Contact:
Michael Daniels
Shareholders Foundation, Inc.
3111 Camino Del Rio North
Suite 423
San Diego, CA 92108
Tel: +1-(858)-779-1554
E-Mail: mail@shareholdersfoundation.com

About Shareholders Foundation, Inc.
The Shareholders Foundation, Inc. is a professional portfolio monitoring and settlement claim filing service, and an investor advocacy group, which does research related to shareholder issues and informs investors of securities lawsuits, settlements, judgments, and other legal related news to the stock/financial market. Shareholders Foundation, Inc. is in contact with a large number of shareholders and offers help, support, and assistance for every shareholder. The Shareholders Foundation, Inc. is not a law firm. Referenced cases, investigations, and/or settlements are not filed/initiated/reached and/or are not related to Shareholders Foundation. The information is provided as a public service. It is not intended as legal advice and should not be relied upon.

This release was published on openPR.