Farfetch has turned a profit in the fourth quarter of 2024, marking a significant recovery after its acquisition by Coupang in late 2023.
Farfetch, the luxury fashion e-commerce platform, has reported turning a profit in the fourth quarter of 2024, a positive development for the company after its acquisition by Coupang in late 2023. Coupang, a Fortune 200 company based in Seattle and listed on the New York Stock Exchange, had purchased Farfetch out of administration and committed to investing $500 million to revitalize its operations.
During an earnings call, Coupang provided insights regarding Farfetch’s financial turnaround. The company announced that Farfetch generated revenues of $1.7 billion in 2024, a significant rebound from its 2022 revenues of $2.3 billion. Additionally, Farfetch’s losses narrowed to $34 million, down from $98.7 million reported the previous year. Coupang characterized the company’s performance as being on a “positive trajectory” as growth has consistently improved quarter after quarter.
Coupang has focused on enhancing Farfetch’s technology and prioritizing its core e-commerce platform. The company’s strategy emphasizes sustainable revenue growth, operational excellence, and a commitment to offering relevant products and services. Coupang believes there is “significant growth potential” for Farfetch, particularly in areas of innovation and emerging markets where the fashion platform already operates.
Stephen Eggleston, chief commercial officer at Farfetch, highlighted the platform’s diverse offerings, noting, “Our customers continue to find on Farfetch the pieces that speak to their diversity of styles, preferences and aesthetics.” Farfetch collaborates with a global network of established boutiques and top brands, which allows it to provide a wide array of authentic fashion items. The platform boasts a range of luxury brands, including Miu Miu, Prada, Gucci, Saint Laurent, and Jacquemus.
In the past year, Farfetch has hosted exclusive events in collaboration with renowned brands such as Brunello Cucinelli, Dolce & Gabbana, and Erdem, further solidifying its presence in the luxury fashion market. Additionally, Coupang has streamlined Farfetch’s operations by disbanding several divisions, including the platform solutions business, to focus on its core e-commerce activities.
New Guards Group, a division of Farfetch, sought Chapter 11-style bankruptcy protection in Italy the previous year, filing a CNC that allows struggling companies to restructure their operations without proceeding directly to insolvency. New Guards Group manages several brands, such as Marcelo Burlon County of Milan, Palm Angels, Unravel Project, Heron Preston, Alanui, and is the licensee for Off-White, owned by Bluestar Alliance based in New York.
Farfetch maintains ownership of Stadium Goods in the U.S. and Browns in London, enhancing its diverse portfolio in the fashion retail sector. As the company aims for profitable growth in the coming years, its focus on catering to aspirational and high-end consumers remains at the forefront of its strategy.
Source: Noah Wire Services
