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Thursday, August 8, 2019

Farfetch (FTCH) reported earnings on Thur 8 Aug 2019 (a/h)

** charts before earnings **


** charts after earnings **

Farfetch beats by $0.02, beats on revs

  • Reports Q2 (Jun) loss of $0.15 per share, $0.02 better thanthe S&P Capital IQ Consensus of ($0.17); revenues rose 42.7% year/year to $209.3 mln vs the $196.51 mln S&P Capital IQ Consensus.
  • Gross Merchandise Value increased by $149.9 million from $338.5 million in second quarter 2018 to $488.5 million in second quarter 2019, representing year-over-year growth of 44.3%.

  • Farfetch also agrees to acquire 100% of the shares of New Guards Group for a total enterprise value of $675 mln
    • New Guards Group is a brand platform for luxury brands' design, production, and distribution. The acquisition of New Guards augments Farfetch's strategy to be the global technology platform for luxury fashion, empowering individuality, and connecting creators, curators and consumers. The New Guards portfolio delivered revenue for the 12 months ending April 30 2019 of $345 mln, with profits before tax of $95 mln in the same period.
    • Farfetch will purchase 100% of the shares of New Guards for a Total Enterprise Value of $675 mln. The consideration payable by Farfetch will be split equally between cash and Farfetch shares, with the exact amounts to be determined at completion following customary adjustments. The transaction is expected to close in the third quarter of 2019.
    • The company plans to fund the cash portion of the purchase price consideration with cash on hand. In connection with the acquisition, and to ensure adequate financial flexibility and liquidity going forward, Farfetch has entered into a commitment letter with J.P. Morgan Securities plc for a 300 mln senior secured loan facility for up to 12 months

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