Farfetch saw its shares hit their highest levels of the year after it announced a deal with Harrods.
According to Bloomberg, Farfetch’s stock increased by as much as 9.4 percent and traded at its highest level since mid-December. Shares have gained more than 20 percent over the past three sessions.
Earlier this week, Farfetch announced it has formed a strategic partnership with Harrods to work together to provide the London luxury retailer with a global eCommerce platform.
Farfetch Black & White builds leading multi-channel eCommerce platforms that allow retailers and brands to better interact with their consumers. The partnership will allow Harrods to utilize all of Farfetch Black & White’s offerings, including eCommerce management, operations support, international logistics support, and technical support.
“Harrods is famous for its exemplary approach to customer service and ‘art of the possible’ philosophy. Achieving the highest level of customer service in a digital world can be difficult, which is why Harrods has chosen to partner with Farfetch Black & White Solutions. Our experience of building platform technology for luxury brands means that Harrods’ online offer will be every bit as exciting as the in-store experience,” said Farfetch Founder, CEO and Co-Chairman José Neves.
While terms of the agreement were not revealed, the “endorsement of Farfetch’s global eCommerce model by Harrods, an elite and globally aspirational department store, will likely open doors for more elite retailers to follow suit and seek Farfetch’s e-expertise,” BI analyst Deborah Aitken wrote.
And Cowen analyst John Blackledge confirmed his outperform rating and $28 price target on Farfetch stock, predicting “strong results” when the company releases its fourth-quarter report later on this week.
“We expect Farfetch to consolidate the highly fragmented $300 billion global luxury market in coming years, driven by rising customers and orders as well as above average take rates and high average order value,” he wrote.