Despite Monthly Visitors Down, Farfetch Made $460 Million For Coupang This Quarter

Core Insights - Coupang's second quarter earnings report showed a 25% year-over-year increase in net revenues to $7.3 billion, with an 18% increase when excluding the recently acquired Farfetch [1][2] - The company reported a net loss of $105 million, primarily due to operating losses at Farfetch and a $121 million fine from Korea's Fair Trade Commission [2] Financial Performance - Coupang's revenues rose to $7.3 billion, marking a 25% increase year-over-year [1] - Excluding Farfetch, revenues increased by 18% [1] - Farfetch generated $748 million in revenue since Coupang's acquisition, with $460 million in the second quarter alone [4] - Farfetch's website traffic averaged over 26 million monthly visitors, surpassing its top three competitors combined [4] Strategic Moves - Coupang's CEO Bom Kim emphasized the strategic value of acquiring Farfetch for $500 million, citing its $4 billion GMV [5] - The management overhaul at Farfetch included the departure of key executives, aiming to streamline operations and focus on core competencies [7][8] - Coupang plans to make Farfetch self-funding without additional investments beyond the initial capital commitment [6] Market Position - Despite challenges, Farfetch remains a leader in the luxury fashion marketplace, commanding significant traffic compared to competitors [15][17] - The luxury fashion market has seen a decline in traffic across competitors, indicating broader market weaknesses [16] Future Outlook - CEO Bom Kim expressed confidence in realizing Farfetch's potential, aiming for close to positive adjusted EBITDA by the end of the year [18] - The company's strategy focuses on disciplined investment and operational excellence to enhance customer experience [19]