What: Farfetch continues to report losses under new owner Coupang.

Why it is important: The integration of Farfetch into Coupang's operations is crucial as it reflects the challenges and opportunities within the e-commerce and luxury retail sectors. Despite its ongoing losses, Farfetch's performance is critical for Coupang’s broader strategy to expand its footprint in luxury e-commerce and improve profitability.

Since acquiring the struggling luxury e-commerce platform Farfetch for $500 million, South Korean giant Coupang is facing the challenge of turning around its financial performance. In Q1, Farfetch contributed $288 million in revenue but reported a net loss of $93 million and an adjusted EBITDA loss of $31 million. While Coupang's overall revenue grew by 23% to $7.1 billion, its net income sharply declined due to the Farfetch acquisition. Coupang's CEO, Bom Kim, remains optimistic, aiming for Farfetch to reach near-positive adjusted EBITDA by year's end. The acquisition is part of Coupang’s larger strategy to enhance customer experience and operational excellence across its diverse services, indicating a strategic expansion into new market segments and continuous infrastructure investment.

Farfetch losses weigh on Coupang in Q1