Investors Bullish on Farfetch After Strong Results Announced in May

Shares of luxury eCommerce retailer Farfetch have been on the rise.

The British luxury goods merchant’s shares rose as much as 15% Friday amid elevated trading volume, Seeking Alpha reported Friday (June 9).

The company’s shares have risen more than 40% over the past month and 30% since the beginning of the year, according to the report.

The report attributes the gains to traders’ continued response to the strong earnings results Farfetch announced in May.

As PYMNTS reported May 23, Farfetch’s results showed a remarkable turnaround as the online luxury retailer achieved 8% year-over-year revenue growth after two quarters of sales declines.

Among the factors contributing to its growth are an enhanced inventory management strategy, strategic partnerships with brands like Reebok, and strong in-store sales.

The firm has also benefited from its partnership with Aurora Mobile Limited, which has supported Farfetch in creating customized and intelligent retail experiences with the help of artificial intelligence (AI)-powered technology, smart operational analytics and machine learning (ML)-based push notification solutions, Farfetch CEO José Neves told WWD in a recent interview.

“Three years ago, we’ve really recognized that personalization was a key strategic initiative for us and we increased the size of our machine-learning data science teams and really invested in the talent to build on this type of technology,” Neves said. “And it has really paid off.”

Other luxury retailers and brands have also been working to increase their share of the market.

For example, on Monday (June 5), Chanel signed one of the largest lease agreements since the onset of the pandemic — a prominent retail space in the bustling shopping district of Causeway Bay in Hong Kong.

Days earlier, on June 1, Saks Fifth Avenue announced that it is now offering its luxury personal shopping and styling service at resorts after previously offering it only in its own stores.

In March, The RealReal added resources to help consignors do business on the luxury resale platform.

The company now offers a team to provide support and answer questions about the consignment process, experts who authenticate items and provide other support and data that helps consignors get an idea of what their items are worth before consigning them.