Shares of Farfetch Ltd. dropped nearly 50% Wednesday after investors seemed to doubt reports that the luxury fashion e-commerce company would be taken private.
Luxury-goods holding company Richemont on Wednesday said it “does not envisage lending or investing into” Farfetch
FTCH,
Richemont, which owns brands such as Cartier and watchmaker Piaget, is a top shareholder of Farfetch and was reportedly part of talks to help the company go private. The Telegraph, a British newspaper, reported on the talks on Tuesday, and the stock soared.
Farfetch late Tuesday said it was not reporting third-quarter earnings on Wednesday as planned, and that it would update the market on a new date. The stock rallied after market close.
So far this year, however, Farfetch shares have dropped more than 75%, which contrasts with gains of about 19% for the S&P 500 index
SPX.
Farfetch went public in 2018 and backers included Richemont as well as China’s Alibaba Group Holding Ltd.
BABA,
Read the full article here