Coupang has taken on Farfetch – all it needs to do is dig itself out.
The luxury e-commerce platform, which melted last year and was scooped up by Coupang for $500 million in rescue funding, is still losing money.
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But Farfetch also continues to move closer to the standalone company it has long promised to be.
For the first quarter ended March 31, Coupang said Farfetch added $288 million in revenue to its business but generated net losses of $93 million. Adjusted losses before interest, taxes, depreciation and amortization were $31 million.
Overall, Coupang’s revenue rose 23 percent in the quarter to $7.1 billion, although net profit fell to $5 million from $86 million a year earlier due to of the agreement with Farfetch.
Bom Kim, CEO of Coupang, told analysts on a conference call on Tuesday: “Our journey at Farfetch is just beginning and the team is focused on generating close to positive adjusted EBITDA based on the rate execution by the end of the calendar year. .”
Farfetch was once considered the luxury e-commerce platform most likely to succeed and regularly brought in large partners like Neiman Marcus and offered a range of services, both online and through a high-tech store concept. Along the way, she has accumulated a number of businesses, including New Guards Group, Stadium Goods and Violet Grey.
Today, Coupang is reshaping the company as it works on multiple fronts.
Kim said Coupang had a “strong start” to 2024 and offered “five takeaways” that clearly showed how busy the company was.
“First, we continue to deliver results because we focus on what matters most: customer experience and operational excellence. Second, we still account for a single-digit share of Korea’s huge retail opportunity and an even smaller share of Taiwan’s. Third, new services like Rocket Fresh and Fulfilment & Logistics by Coupang, or FLC, are gaining momentum.… Fourth, our developing offerings are making significant progress.… Finally, we continue to invest in infrastructure.
It’s all part of the company’s relentless quest for “new moments of customer wonder.”
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