Latest news with #Coupang
Fashion Network
10 hours ago
- Business
- Fashion Network
Farfetch UK subsidiary accounts show challenging times ahead of Coupang takeover
It's a source of ongoing frustration in the UK that privately-held company accounts can be quite out of date by the time they're filed. And while Farfetch as a New York Stock Exchange-listed business used to file in the US quarterly and promptly, now that it's owned by South Korea's Coupang, we only get to see its results as part of a much wider Coupang division that doesn't really tell us how Farfetch is doing. Yet the company — or to be precise Farfetch UK Limited — still files its accounts at the UK's Companies House and has just done so for full-year 2023. OK, that's quite a bit out of date but it was the year in which the business came close to failure and its 2024 results are due by the end of September, so we may get a more up to date picture soon. But what do those 2023 figures tell us? Well, as we said, the results are for a UK-based wholly-owned subsidiary of Farfetch Limited, and its principal territories are the UK and other non-EU countries, excluding the US. Reporting in US dollars, it said its revenue increased to $1.568 billion from $1.541 billion. The cost of sales also increased to $941.5 million from $916.6 million. Gross profit rose to $626.7 million from $625 million. Also on the plus side, the average order value on the marketplace rose to $592 from $549. The operating loss was huge but narrowed to $519.4 million from $574.7 million although the loss before tax widened to $602.4 million from $455.9 million. The company received a $4 million+ income tax credit during the year as opposed to a $19+ million income tax expense the year before, but the net loss for the period was $598 million compared to a loss of just under $475 million a year earlier. The e-tailer said the second half of 2023 (during which time the business hit crisis mode and was eventually taken over by Coupang) saw the retail market for luxury goods suffering a 'significant downturn' and this along with other macroeconomic and geopolitical challenges had a 'material adverse impact' on the results of Farfetch Limited Group. While it added that the directors 'anticipate the business environment will remain competitive', it said that 'with careful focus on appropriate diversification as well as continuous review of… the activities of the group, the directors are confident in the group's ability to continue to operate'. So there we are, not exactly up to date but showing just how challenging the year in which Farfetch was taken over was. Coming more up to date, its owner Coupang reported its own Q1 2025 results back in May and they showed that in its Developing Offerings segment (which actually includes International, Eats, Play, and Fintech as well as Farfetch) net revenues were $1 billion. That was up 67% year on year on a reported basis and 78% on a currency-neutral basis. We don't know any details of just what went on to cause that revenue leap. The Developing Offerings segment's adjusted EBITDA was a loss of $168 million, but that was an improvement of $18 million year on year. There were only three mentions of Farfetch in the entire quarterly results release so it doesn't seem likely that we'll get any more information in future Coupang results reports. Fingers crossed that the Farfetch UK results for 2024 do arrive by late September as scheduled.
Fashion Network
11 hours ago
- Business
- Fashion Network
Farfetch UK subsidiary accounts show challenging times ahead of Coupang takeover
It's a source of ongoing frustration in the UK that privately-held company accounts can be quite out of date by the time they're filed. And while Farfetch as a New York Stock Exchange-listed business used to file in the US quarterly and promptly, now that it's owned by South Korea's Coupang, we only get to see its results as part of a much wider Coupang division that doesn't really tell us how Farfetch is doing. Yet the company — or to be precise Farfetch UK Limited — still files its accounts at the UK's Companies House and has just done so for full-year 2023. OK, that's quite a bit out of date but it was the year in which the business came close to failure and its 2024 results are due by the end of September, so we may get a more up to date picture soon. But what do those 2023 figures tell us? Well, as we said, the results are for a UK-based wholly-owned subsidiary of Farfetch Limited, and its principal territories are the UK and other non-EU countries, excluding the US. Reporting in US dollars, it said its revenue increased to $1.568 billion from $1.541 billion. The cost of sales also increased to $941.5 million from $916.6 million. Gross profit rose to $626.7 million from $625 million. Also on the plus side, the average order value on the marketplace rose to $592 from $549. The operating loss was huge but narrowed to $519.4 million from $574.7 million although the loss before tax widened to $602.4 million from $455.9 million. The company received a $4 million+ income tax credit during the year as opposed to a $19+ million income tax expense the year before, but the net loss for the period was $598 million compared to a loss of just under $475 million a year earlier. The e-tailer said the second half of 2023 (during which time the business hit crisis mode and was eventually taken over by Coupang) saw the retail market for luxury goods suffering a 'significant downturn' and this along with other macroeconomic and geopolitical challenges had a 'material adverse impact' on the results of Farfetch Limited Group. While it added that the directors 'anticipate the business environment will remain competitive', it said that 'with careful focus on appropriate diversification as well as continuous review of… the activities of the group, the directors are confident in the group's ability to continue to operate'. So there we are, not exactly up to date but showing just how challenging the year in which Farfetch was taken over was. Coming more up to date, its owner Coupang reported its own Q1 2025 results back in May and they showed that in its Developing Offerings segment (which actually includes International, Eats, Play, and Fintech as well as Farfetch) net revenues were $1 billion. That was up 67% year on year on a reported basis and 78% on a currency-neutral basis. We don't know any details of just what went on to cause that revenue leap. The Developing Offerings segment's adjusted EBITDA was a loss of $168 million, but that was an improvement of $18 million year on year. There were only three mentions of Farfetch in the entire quarterly results release so it doesn't seem likely that we'll get any more information in future Coupang results reports. Fingers crossed that the Farfetch UK results for 2024 do arrive by late September as scheduled.
Fashion Network
11 hours ago
- Business
- Fashion Network
Farfetch UK subsidiary accounts show challenging times ahead of Coupang takeover
It's a source of ongoing frustration in the UK that privately-held company accounts can be quite out of date by the time they're filed. And while Farfetch as a New York Stock Exchange-listed business used to file in the US quarterly and promptly, now that it's owned by South Korea's Coupang, we only get to see its results as part of a much wider Coupang division that doesn't really tell us how Farfetch is doing. Yet the company — or to be precise Farfetch UK Limited — still files its accounts at the UK's Companies House and has just done so for full-year 2023. OK, that's quite a bit out of date but it was the year in which the business came close to failure and its 2024 results are due by the end of September, so we may get a more up to date picture soon. But what do those 2023 figures tell us? Well, as we said, the results are for a UK-based wholly-owned subsidiary of Farfetch Limited, and its principal territories are the UK and other non-EU countries, excluding the US. Reporting in US dollars, it said its revenue increased to $1.568 billion from $1.541 billion. The cost of sales also increased to $941.5 million from $916.6 million. Gross profit rose to $626.7 million from $625 million. Also on the plus side, the average order value on the marketplace rose to $592 from $549. The operating loss was huge but narrowed to $519.4 million from $574.7 million although the loss before tax widened to $602.4 million from $455.9 million. The company received a $4 million+ income tax credit during the year as opposed to a $19+ million income tax expense the year before, but the net loss for the period was $598 million compared to a loss of just under $475 million a year earlier. The e-tailer said the second half of 2023 (during which time the business hit crisis mode and was eventually taken over by Coupang) saw the retail market for luxury goods suffering a 'significant downturn' and this along with other macroeconomic and geopolitical challenges had a 'material adverse impact' on the results of Farfetch Limited Group. While it added that the directors 'anticipate the business environment will remain competitive', it said that 'with careful focus on appropriate diversification as well as continuous review of… the activities of the group, the directors are confident in the group's ability to continue to operate'. So there we are, not exactly up to date but showing just how challenging the year in which Farfetch was taken over was. Coming more up to date, its owner Coupang reported its own Q1 2025 results back in May and they showed that in its Developing Offerings segment (which actually includes International, Eats, Play, and Fintech as well as Farfetch) net revenues were $1 billion. That was up 67% year on year on a reported basis and 78% on a currency-neutral basis. We don't know any details of just what went on to cause that revenue leap. The Developing Offerings segment's adjusted EBITDA was a loss of $168 million, but that was an improvement of $18 million year on year. There were only three mentions of Farfetch in the entire quarterly results release so it doesn't seem likely that we'll get any more information in future Coupang results reports. Fingers crossed that the Farfetch UK results for 2024 do arrive by late September as scheduled.
Yahoo
4 days ago
- Business
- Yahoo
Prediction: 2 Stocks That Will Be Worth More Than CoreWeave 10 Years From Now
Key Points CoreWeave is popular today, but it has a lot of risks tied to AI. Coupang is a fast-growing e-commerce technology company that just expanded into AI. SoFi Technologies is gaining a lot of share in consumer banking right now. 10 stocks we like better than Coupang › Investors have fallen in love with artificial intelligence (AI) start-up CoreWeave. The AI cloud provider is growing its capacity at a rapid pace, and it just announced a new $6 billion data center project. Shares of the stock have soared since its initial public offering (IPO) earlier this year, and it now has a market cap of $70 billion. However, CoreWeave is a dangerously unprofitable company, loaded with debt, and tied to the rollercoaster ride that is AI cloud spending. It is a highly risky stock, and one that might disappoint investors in the years to come. Here are two stocks that I predict will be larger than CoreWeave in 10 years: Coupang (NYSE: CPNG) and SoFi Technologies (NASDAQ: SOFI). Here's why. Building on existing business models Coupang is an ambitious technology giant from South Korea, modeling itself on Amazon's success in the United States. It has an e-commerce platform, its own logistics network, and a subscription program that gives users free shipping and discounts. Sound familiar? There are now 23.4 million active customers on the South Korean platform, meaning the majority of households in the small country are now using Coupang regularly. Last quarter, gross profit grew 31% year over year on a foreign currency neutral basis, driven by the growing efficiencies of Coupang's vertically integrated commerce offering. Now, the company is expanding its horizons, to both new geographies and new business models. Coupang recently entered Taiwan, a wealthy country with 23 million people. Its e-commerce model is growing quickly, with net revenues in Coupang's Developing Offerings segment accelerating to 78% year-over-year growth on a foreign currency neutral basis, mainly driven by Taiwan. At $1 billion in revenue last quarter, these new offerings are now a large piece of Coupang's overall revenue that will get close to $30 billion in 2025, with plenty of room to grow. In new technologies, Coupang just publicly unveiled its AI cloud service, Coupang Intelligent Cloud. This division is aiming to take advantage of cloud and AI spending in South Korea, where the government is giving out grants to accelerate growth. It is still a nascent opportunity, but one the technology giant is equipped to handle due to its geographical location. For example, none of the American technology giants are likely to win grants to build data centers funded by the Korean government. Today, Coupang has a market cap of $56 billion. With so many diversified opportunities available for it, I think Coupang is a much better bet than CoreWeave and will be a larger enterprise 10 years from now. High growth in consumer finance SoFi is a well-known and fast-growing digital banking brand in the United States. Over the last decade, it has gone from being a student loan refinancer to being a full-fledged digital consumer finance tool. It now has banking, investing, savings, insurance, spending, and lending products available through its easy-to-use mobile application. This has made it enticing for customers to switch banks to SoFi. Customer deposits grew to $27 billion in the first quarter of 2025, compared to $26 billion in the fourth quarter of 2024. While the level of deposits is nowhere near the big banks', this gives SoFi a large runway to steal market share from these legacy providers. With lower overhead costs, SoFi is able to offer higher yields on deposits, which many customers enjoy. It then upsells customers to credit cards, lending, and investing services. SoFi's adjusted revenue grew 33% year over year last quarter to $771 million. The company is finally profitable, with net income of $71 million, alleviating a previous concern from investors. As it convinces more people to switch to SoFi, the company should enjoy its land-and-expand model and watch revenue and earnings grow for years to come. Over the next 10 years, I expect consistent growth in deposits, revenue, and earnings for SoFi that will drive the stock higher and higher. At a market cap of $23 billion, SoFi is significantly smaller than CoreWeave today. But 10 years is a long time, and CoreWeave is a highly risky stock with a lot of downside. With this taken into account, I believe that SoFi will have a larger market cap than CoreWeave in 10 years' time. Should you invest $1,000 in Coupang right now? Before you buy stock in Coupang, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Coupang wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $687,149!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,060,406!* Now, it's worth noting Stock Advisor's total average return is 1,069% — a market-crushing outperformance compared to 180% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of July 15, 2025 John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Brett Schafer has positions in Amazon and Coupang. The Motley Fool has positions in and recommends Amazon. The Motley Fool recommends Coupang. The Motley Fool has a disclosure policy. Prediction: 2 Stocks That Will Be Worth More Than CoreWeave 10 Years From Now was originally published by The Motley Fool
Yahoo
4 days ago
- Business
- Yahoo
Why the Market Dipped But Coupang, Inc. (CPNG) Gained Today
In the latest trading session, Coupang, Inc. (CPNG) closed at $31.49, marking a +1.09% move from the previous day. The stock exceeded the S&P 500, which registered a loss of 0.01% for the day. Meanwhile, the Dow experienced a drop of 0.32%, and the technology-dominated Nasdaq saw an increase of 0.05%. The stock of company has risen by 9.68% in the past month, leading the Retail-Wholesale sector's gain of 3.27% and the S&P 500's gain of 5.37%. Analysts and investors alike will be keeping a close eye on the performance of Coupang, Inc. in its upcoming earnings disclosure. The company is predicted to post an EPS of $0.07, indicating constancy compared to the equivalent quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $8.41 billion, indicating a 14.83% upward movement from the same quarter last year. For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $0.3 per share and a revenue of $34.75 billion, representing changes of +36.36% and +14.79%, respectively, from the prior year. Investors might also notice recent changes to analyst estimates for Coupang, Inc. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability. Our research shows that these estimate changes are directly correlated with near-term stock prices. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system. The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. As of now, Coupang, Inc. holds a Zacks Rank of #2 (Buy). With respect to valuation, Coupang, Inc. is currently being traded at a Forward P/E ratio of 105. For comparison, its industry has an average Forward P/E of 22.33, which means Coupang, Inc. is trading at a premium to the group. The Internet - Commerce industry is part of the Retail-Wholesale sector. This industry, currently bearing a Zacks Industry Rank of 67, finds itself in the top 28% echelons of all 250+ industries. The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1. Make sure to utilize to follow all of these stock-moving metrics, and more, in the coming trading sessions. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Coupang, Inc. (CPNG) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
