Currently in earnings season all of the big stores and chains have been reporting decline or big worries about supply chain issues and lowering estimates going into 2022.
The first stock that took a giant hit was the British-Portuguese luxury fashion online retailer who experienced a 12% loss taking their year long returns to -33.79% and is currently trading at $34.78 per share with previous all time highs of $73.40.
FarFetch Avg estimate was -0.32 from the current year of 0.19 which has been blamed on pressures to sell, competition and of course the pandemic. With the luxury goods market booming with Louis Vuitton, Burberry and Hermes stocks booming it was a shock to see such a sudden drop but it does show what might be to come for those super brands.
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GAP is next on the list who have just reported yet again the same concerns that supply issues and low stock is going to drive down their sales going into 2022. With expected profits of 50c, GAP only returns 27c per share which is a near 50% miss and the premarket is reacting with current lows of -20% and many investors selling off stock or short sellers piling on the pressure to drive the price down to $20 per share from previous all time highs of $35.50.
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