Here's Why Farfetch Shares Are Rallying After Hours

Farfetch Ltd (NYSE: FTCH) shares are trading higher after the company reported better-than-expected first-quarter results, with EPS and sales beating consensus estimates. 

The luxury fashion e-commerce marketplace reported revenues of $556.4 million, which grew 8% year-over-year and beat consensus estimates of $512.72 million. The company also reported an EPS loss of $0.16, which was smaller than the $0.42 loss expected by analysts.

Gross Merchandise Value (GMV) increased slightly, rising 0.1% year over year, while digital platform GMV fell 1.2%, reflecting headwinds from the suspension of trade in Russia and a slow China recovery. Brand Platform GMV grew 10% year-over-year. 

The company expects an FY23 Group GMV of approximately $4.9 billion.

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"Our sequential improvement in GMV growth in the U.S. and China, our two largest markets, as well as in orders across the Farfetch Marketplace, indicate the strength and resilience of our core business," said founder, chairman and CEO José Neves. 

Farfetch is an online platform connecting sellers and buyers of personal luxury goods.

Shares of Farfetch were up 15.44% at $5.01 in after-hours trading, according to data from Benzinga Pro. 

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Photo: FarFetch