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


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.

Previous articleThe Wall Street Journal: Biden to choose former FDA chief Robert Califf to run the agency again
Next articleA record 4.4 million workers in the U.S. quit their jobs in September


Please enter your comment!
Please enter your name here