Farfetch stock shoots up toward best day in 17 months after confirming talks to boost Richemont partnership

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Shares of Farfetch Ltd. FTCH, +19.06% shot up 16.5% toward a three-month high in morning trading Friday, after the platform for the luxury fashion industry confirmed that it was in discussions Switerland-based luxury goods maker Compagnie Financiere Richemont SA CFRUY, +11.06% CFR, +10.88% regarding an expansion of the existing partnership. The discussions included Farfetch making a minority investment in Richemont’s Yoox Net-A-Porter business. “This would essentially team up [Farfetch] with its largest competitor, add greater negotiating leverage with brands and fuel a material [Gross Merchandise Value/Earnings Before Interest and Tax] ramp for the platform,” wrote Wells Fargo analyst Ike Boruchow, in a note to clients. Farfetch’s stock is on track for the biggest once day gain since it ran up 19.4% on June 25, 2020, and trading volume on Friday swelled 8.2 million shares, already well more than double the full-day average of about 3.7 million shares. Meanwhile, the U.S.-listed shares of Richemont jumped 10.4% toward a record. Farfetch’s stock has still lost 28.1% year to date, while Richemont shares have soared 61.4% and the S&P 500 SPX, +0.72% has advanced 24.6%.

This article was originally published by Marketwatch.com. Read the original article here.

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