Farfetch (FTCH) will report Q1 earnings tonight after the close (16:05 last quarter). There is a conference call scheduled at 16:30.

Current Capital IQ consensus calls for Q1 adj. loss per share of $0.15 on revs of $171 mln 

  • Since this is FTCH's first Q2 report as a public company, FTCH's 2Q18 #s are not available to the public.

  • The F-1 did note that revenue for the first half of 2018 was $267.5 mln (+55% Y/Y). Adj. Ebitda loss was $49.1 mln vs $14 mln in first half of 2017 

Current Q1 Guidance calls for Plaform GMV to grow ~40% y/y and adjusted EBITDA margin to be ~(24-22%)

For FY 19, Platform GMV is expected to grow ~40%

  • Farfetch provides a platform to sell luxry fashion in China. Its business consists of Farfetch Marketplace (source of over 90% of revenue) which provides consumers access to luxury merchandise. The company cites the ‘long and careful relationship' building w/ its luxury sellers as a ‘significant' barrier to entry. Says it has ‘nurtured these relationships for a decade.' 

    • Farfetch also owns Browns, a British luxury goods boutique that operates two retail stores in London

    • FTCH generates income from transactions conducted on its platform, which, together w/ Browns In-Store revenue, represents GMV

Last quarter, FTCH beat on both EPS and revs, and reported GMV of $466.5 mln (above its guidance range). 

TECHS

FTCH gapped up ~18% following its Q4 report. Since then, FTCH has been trending lower and is currently trading around the 24 level (filled the gap up)

FTCH has a $7 bln market and its short interest is ~5% of its ~137 mln float.

TRADE: FTCH JUN 27C