Farfetch’s forecast reduction weighs on the fashion industry

On Friday, retailers rated Farfetch’s reduction in annual targets as negative for the mood in the clothing industry. The online retailer of designer:innen fashion slashed forecasts for important gross merchandise value and profitability. On the Nasdaq, the papers then collapsed by 37 percent before the market to a record low. In the second quarter, sales fell 13.5 percent short of the consensus forecast.

On the Euronext in Paris, the prices of LVMH, Kering and Hermes fell by up to 1.6 percent. On the German market, Adidas fell by 1.1 percent and Puma and Zalando each by 2.3 percent.

Analyst Ashley Helgans from the investment house Jefferies spoke of a stubborn lack of predictability for further development with regard to Farfetch, especially since the economy is likely to fluctuate strongly in the short term. Industry expert Stephen Ju from Credit Suisse referred to lower-than-expected sales prices and expects higher costs in the next two quarters. (dpa)

ttn-12