A securities class action has been filed in the USDC – MD. against Farfetch Limited (“Farfetch” or the “Company”), on behalf of a class consisting of all persons and entities that purchased or otherwise acquired Farfetch securities between March 9, 2023 through August 17, 2023, both dates inclusive (the “Class Period”).
Farfetch, together with its subsidiaries, operates a global platform for the luxury fashion industry. In addition to revenue, one of Farfetch’s most important financial metrics is gross merchandise value (“GMV”), which the Company defines as the total dollar value of orders processed, inclusive of product value, shipping, and duty, and net of returns, value added taxes, and cancellations. According to Farfetch, the Company’s GMV closely correlates with its revenue.
The Complaint alleges that, throughout the Class Period, Defendants made materially false and misleading statements regarding the Company’s business, operations, and prospects. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that:
- Farfetch was experiencing a significant slowdown in growth in the U.S. and China;
- Farfetch also faced onboarding challenges impacting the launch of its Reebok partnership;
- Farfetch downplayed challenges it faced with respect to, and/or overstated its ability to manage, its supply chain and inventory;
- all the foregoing was having a significant negative impact on Farfetch’s revenue and GMV growth;
- accordingly, Farfetch was unlikely to meet market expectations for its Q2 2023 financial results or its own FY 2023 revenue guidance; and
- as a result, the Company’s public statements were materially false and misleading at all relevant times, thereby harming investors.
If you purchased Farfetch securities during the Class Period and would like to receive more information or join the action, please enter your contact information below for a FREE consultation and click “Submit Your Information”.
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