🎁Top movers | FTCH dips 36% on revenue and margin miss; CHGG jumped on repurchase
$Farfetch Ltd(FTCH)$ Revenue Miss and Profit Decline Lead to 36% Stock Plunge
Shares plunged 36% after Farfetch posted second-quarter revenue that missed estimates. The online luxury retailer posted revenue of $572 million, lower than the consensus estimate of $648.27 million.
Q2 EPS of ($0.21), $0.07 better than the analyst estimate of ($0.28). Farfetch Limited sees FY2023 revenue of $2.5 billion, versus the consensus of $2.8B.
Revenue: $572 million vs. $648.27 million.
EPS: -$0.21 vs. -$0.28
The gross profit for the quarter saw a significant drop of 10% compared to the previous year, totaling $242 million (£190 million). The gross profit margin also declined from 46.2% in the previous year to 42.5% during this quarter. This decrease was largely attributed to the underperformance of its digital platform division.
The digital platform division's gross profit margin fell by 340 basis points to 49.3%. This drop was influenced by a decrease in third-party gross profit margin, which was affected by higher duties and shipping charges.
The revenue decline was primarily driven by a 42.2% reduction in brand platform revenue, amounting to $67 million (£53 million). In-store revenue also decreased by 15.1% to $23 million (£18 million). However, these decreases were partially offset by a 10.5% increase in digital platform revenue, totaling $482 million (£379 million).
In summary, Farfetch faced challenges in its profitability during this quarter due to decreased revenue from its brand platform and in-store sales, as well as a decline in gross profit margin within its digital platform division. The company's efforts to offset these declines included increased sales of lower-margin first-party products and a modest rise in digital platform revenue.
$Chegg(CHGG)$ Surges 11% on Stock Repurchase and Strong Q2 Revenue Performance
$Chegg(CHGG)$ experienced an 11% increase in its stock price after the company announced that it has authorized an additional $200 million for its securities repurchase program. This program allows Chegg to buy back its common stock and/or convertible notes through various methods such as open market purchases, block trades, and privately negotiated transactions.
The company still has approximately $89 million remaining from a previously announced $2 billion securities repurchase program, indicating its ongoing commitment to returning value to shareholders through repurchases.
Earlier in the same month, Chegg's stock price had risen due to its quarterly revenue exceeding estimates. In terms of earnings, Chegg reported second-quarter earnings per share (EPS) of $0.28, slightly below the estimated $0.29. However, the company's revenue for the same quarter was $182.9 million, surpassing the average analyst estimate of $176.51 million.
Revenue: $182.9 million vs. $176.51 million expected
EPS: $0.28 VS. 0.29
Looking forward to the third quarter, Chegg provided an estimate for net revenue between $151 million and $153 million, which is slightly above the estimated $151.95 million.
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🌟🌟🌟在当前市场低迷和全球经济增长放缓的情况下，$Farfetch Ltd(FTCH)$ 正面临着自2007年开业以来最大的挑战之一。
今天，它的股价在短短一天内暴跌了45%！Farfetch现在一年内下跌了68%。
怎么了？Farfetch是全球领先的奢侈品时尚行业平台。它将190多个国家的客户与1400个世界上最好的品牌、精品店和百货商店联系起来。
然而，它目前在其最大的两个市场美国和中国面临疲软的需求。Farfetch也没有达到收入预期，受到零售商因剩余库存而削减订单的沉重打击。
在当前的市场环境下，我看跌Farfetch，认为它正面临最严峻的生存挑战。但是，如果它的管理层认真工作，能够扭转业务，它可能会在未来蓬勃发展。
@WallStreet_Tiger
Ok