Coupang took over Farfetch – now just digging itself out.
The luxury e-commerce platform, which went bankrupt last year and Coupang scooped up $500 million in bailout funds, continues to lose money.
But Farfetch is moving ever closer to becoming the self-sustaining business it has long been promised.
For the first quarter ended March 31, Coupang said Farfetch added $288 million in revenue to its business, but had a net loss of $93 million. His adjusted loss, excluding interest, taxes and depreciation, amounted to $31 million.
Coupang's overall sales rose 23% to $7.1 billion in the quarter, but its partnership with Farfetch reduced net income to $5 million from $86 million a year earlier.
“Our journey at Farfetch is just beginning and the team is close to being positive on a run-rate basis by the end of the calendar year,” Coupang CEO Bom Kim told analysts on a conference call Tuesday. “We are focused on generating adjusted EBITDA.” ”
Farfetch was once considered the luxury e-commerce platform with the highest potential for success, regularly signing up major partners like Neiman Marcus and offering a range of services both online and in its high-tech store concept . Along the way, he has amassed many businesses, including New Guards Group, Stadium Goods, and Violet Gray.
Currently, Coupang is restructuring the business and working on different areas.
Kim said Coupang is off to a “strong start” into 2024 and offered “five points” that highlight how busy the company is.
“First, we continue to deliver results because we focus on what matters most: customer experience and operational excellence. Second, our share of the large retail opportunity in Korea is It's still in the single digits, and our share in Taiwan is even smaller.Third, new services like Rocket Fresh and FLC (FLC) are gaining momentum…Fourth, our development services have made significant progress. …Finally, we continue to invest in our infrastructure.”
All of this is due to the company's constant pursuit of “new 'wow' moments for customers.”
