Unpacking Farfetch’s Big Sales Miss

Farfetch’s struggles to attract customers to its luxury marketplace deepened in the second quarter, with its own brands taking the biggest hit.

The e-tailer’s revenue dropped 1 percent in the second quarter from a year earlier to $572 million, falling well short of the average analyst forecast of $650 million. The company also lowered its sales outlook for the full year by $500 million, to $4.4 billion.

The decline was led by a more than 40…