Rocket Falls After Fashion Group Writedown Hurts Profits
- Stock falls as much as 12 percent, most in four months
- Jefferies says valuation methodology is ‘overconfident’
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Rocket Internet SE shares fell the most in more than four months after a writedown of e-retailer Global Fashion Group contributed to a first-half loss of 617 million euros ($690 million) at the German startup factory.
Shares of Rocket lost as much as 12 percent before recovering somewhat to a 9 percent drop to 17.16 euros at 11:49 a.m. in Frankfurt. Global Fashion Group, a collection of apparel e-commerce sites in Asia, Africa, South America and Australia, dragged down first-half earnings by 383 million euros, Berlin-based Rocket said in a statement late Thursday.