NEW YORK--(BUSINESS WIRE)--The law firm of Kirby McInerney LLP announces that a class action lawsuit has been filed in the U.S. District Court for the District of Maryland on behalf of those who acquired Farfetch Limited (“Farfetch” or the “Company”) (NYSE: FTCH) securities during the period from March 9, 2023 through August 17, 2023 (the “Class Period”). Investors have until December 19, 2023 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
On August 17, 2023, Farfetch announced its Q2 2023 financial results, reporting revenue of approximately $572 million, significantly less than the market consensus of $650.71 million. Farfetch also issued a fiscal year 2023 revenue forecast of approximately $2.5 billion, compared to the average analyst estimate of $2.8 billion and the Company’s prior fiscal year 2023 revenue forecast of $2.9 billion.
That same day, Farfetch held a conference call and 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 gross merchandise value for the quarter, as well forced the Company to rein in expectations for fiscal year 2023.
On August 18, 2023, media outlets reported that multiple analysts had downgraded Farfetch based on its poor Q2 2023 results and disappointing guidance for fiscal year 2023. Following these developments, the price of Farfetch shares declined by $2.15 per share, or approximately 45.17%, from $4.76 per share to close at $2.61 on August 18, 2023.
The lawsuit alleges that, throughout the Class Period, Defendants made false and/or misleading statements, as well as failed to disclose that: (i) Farfetch was experiencing a significant slowdown in growth in the U.S. and China; (ii) the Company faced onboarding challenges impacting the launch of its Reebok partnership; and (iii) the Company downplayed challenges it faced with respect to, and/or overstated its ability to manage, its supply chain and inventory.
If you purchased or otherwise acquired Farfetch securities, have information, or would like to learn more about this investigation, please contact Thomas W. Elrod of Kirby McInerney LLP by email at firstname.lastname@example.org, or by filling out this contact form, to discuss your rights or interests with respect to these matters without any cost to you.
Kirby McInerney LLP is a New York-based plaintiffs’ law firm concentrating in securities, antitrust, whistleblower, and consumer litigation. The firm’s efforts on behalf of shareholders in securities litigation have resulted in recoveries totaling billions of dollars. Additional information about the firm can be found at Kirby McInerney LLP’s website: https://www.kmllp.com.
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