What: The online luxury platform significantly scaled back its expectations for sales in 2022, as the loss of its Russia business and other factors have taken a toll.

Why it is important: E-commerce companies of all sorts have faced an uphill climb lately as they’ve struggled to top the huge sales they recorded at the height of the pandemic surge last year. Many have seen their stock fall, including Farfetch, whose shares are down 77 percent this year.

Between Russia’s war in Ukraine, Covid lockdowns in China, and the removal of markdown inventory from partner brands pushing for more full-price sales as a factor hampering its business, the year is not shaping up as Farfetch expected.

The company said it now expects total merchandise sales on its digital platform to rise 5 percent to 10 percent above last year. When it gave its previous forecast at the end of February, it anticipated sales would rise 28 percent to 32 percent.

The company sought to reassure investors that growth in other important regions, such as the US, remained strong, however, and that it sees no general slowdown in online sales of luxury goods. While it currently has no plans to resume operations in Russia, it expects business in China to pick up as the country reopens.

Farfetch slashes its outlook for the year