To The Moon

$Farfetch Ltd(FTCH)$ Revenue Miss and Profit Decline Lead to 36% Stock Plunge Shares plunged 36% after Farfetch posted second-quarter revenue that missed estimates. The online luxury retailer posted revenue of $572 million, lower than the consensus estimate of $648.27 million. Q2 EPS of ($0.21), $0.07 better than the analyst estimate of ($0.28). Farfetch Limited sees FY2023 revenue of $2.5 billion, versus the consensus of $2.8B. Revenue: $572 million vs. $648.27 million. EPS: -$0.21 vs. -$0.28 The gross profit for the quarter saw a significant drop of 10% compared to the previous year, totaling $242 million (£190 million). The gross profit margin also declined from 46.2% in the previous year to 42.5% during this quarter. This decrease was largely attributed to the underperformance of its digital platform division. The digital platform division's gross profit margin fell by 340 basis points to 49.3%. This drop was influenced by a decrease in third-party gross profit margin, which was affected by higher duties and shipping charges. The revenue decline was primarily driven by a 42.2% reduction in brand platform revenue, amounting to $67 million (£53 million). In-store revenue also decreased by 15.1% to $23 million (£18 million). However, these decreases were partially offset by a 10.5% increase in digital platform revenue, totaling $482 million (£379 million). In summary, Farfetch faced challenges in its profitability during this quarter due to decreased revenue from its brand platform and in-store sales, as well as a decline in gross profit margin within its digital platform division. The company's efforts to offset these declines included increased sales of lower-margin first-party products and a modest rise in digital platform revenue. $Chegg(CHGG)$ Surges 11% on Stock Repurchase and Strong Q2 Revenue Performance $Chegg(CHGG)$ experienced an 11% increase in its stock price after the company announced that it has authorized an additional $200 million for its securities repurchase program. This program allows Chegg to buy back its common stock and/or convertible notes through various methods such as open market purchases, block trades, and privately negotiated transactions. The company still has approximately $89 million remaining from a previously announced $2 billion securities repurchase program, indicating its ongoing commitment to returning value to shareholders through repurchases. Earlier in the same month, Chegg's stock price had risen due to its quarterly revenue exceeding estimates. In terms of earnings, Chegg reported second-quarter earnings per share (EPS) of $0.28, slightly below the estimated $0.29. However, the company's revenue for the same quarter was $182.9 million, surpassing the average analyst estimate of $176.51 million. Revenue: $182.9 million vs. $176.51 million expected EPS: $0.28 VS. 0.29 Looking forward to the third quarter, Chegg provided an estimate for net revenue between $151 million and $153 million, which is slightly above the estimated $151.95 million. Do you use $Farfetch Ltd(FTCH)$ in your daily life? How do you view the top movers? Leave your comments to win tiger coins! Rewards All valid comments on the following post will receive 5 Tiger Coins. The First 10 and Last 10 Commentator with qualified comments will receive another 10 Tiger Coins.