Coupang Says Farfetch Turnaround Is Taking Root
LONDON — Farfetch turned a profit in the fourth quarter of 2024 and parent Coupang is confident that its turnaround strategy for the once-ailing company is taking root.
Coupang, a Fortune 200 company listed on the New York Stock Exchange, purchased Farfetch out of administration in late 2023 and pledged $500 million to help revive it.
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Since then Coupang has been sharpening Farfetch's technology, and focusing on the core business: the fashion e-commerce platform.
On Tuesday, the Seattle-based e-commerce giant updated on the Farfetch turnaround during an earnings call to discuss its own fourth quarter and year-end results.
Coupang said Farfetch achieved revenues of $1.7 billion in 2024, while losses narrowed to $34 million. It said the company has been on a 'positive trajectory' quarter after quarter.
In 2022, the last full year that Farfetch reported financials, revenues were $2.3 billion, with losses hitting $98.7 million.
Coupang said its continued focus on sustainable revenue growth, 'operational excellence' and offering relevant products and services was paying off. The company said it sees 'significant growth potential' for Farfetch both in innovation, and in emerging markets where the fashion platform already has a presence.
The aim is for Farfetch to deliver profitable growth in the coming years by offering fashion and luxury products to aspirational and high-end consumers. Its roster of brands currently includes Miu Miu, Prada, Gucci, Saint Laurent and Jacquemus, although the selections are smaller than in the past.
Coupang has also spent the past year cleaning up the Farfetch business, shuttering various divisions, including the platform solutions business.
New Guards Group, a division of Farfetch, sought Chapter 11-style bankruptcy protection in Italy last year. It filed a CNC, which offers troubled companies the time and space to restructure, and chart a path forward. It is not an insolvency procedure.
New Guards Group is home to a host of brands including Marcelo Burlon County of Milan, Palm Angels, Unravel Project, Heron Preston, Alanui, Peggy Gou, Ambush and There Was One. It is also the licensee of Off-White, which is owned by the New York-based Bluestar Alliance.
Farfetch continues to own Stadium Goods in the U.S. and Browns in London.
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