Farfetch pull trading update as New York take-private rumours swirl
Farfetch, the UK-headquartered but New York listed online luxury goods operation, has pulled a planned third quarter update.
The unusual move will only fuel further rumours that boss Jose Neves is looking for a way off the public markets after a disastrous New York float.
Reports began to surface earlier this week that Neves had the support of major shareholders including Richemont to engineer a take-private after a miserable time on the New York public exchanges, the share price dipping more than 90 per cent on the original offer price.
In a shared with New York markets at 10pm last night, the firm said it “will not announce its third quarter 2023 financial results and will not hold its related conference call previously scheduled for Wednesday, November 29, 2023. The company expects to provide a market update in due course.”
Farfetch’s statement also said that previous guidance could no longer be relied upon.
Shares shot up in after-hours trading by 15 per cent as markets responded to the speculation.
Advocates for the London public markets often hold up Farfetch’s miserable ride in New York as a sign that global equity markets are in the doldrums, and that London’s lack of go-go stocks is not necessarily unique.
The firm’s Q2 earnings showed revenues of $579m, only $7m above a year before.