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

DowjonesNews MarketWatch ·  Nov 12, 2021 11:32

Shares of Farfetch Ltd. (FTCH) 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 (CFR.EB) 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 has advanced 24.6%.

-Tomi Kilgore

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