What: South Korean e-commerce leader Coupang delivers robust Q4 results with 21% revenue growth, showing successful diversification through Farfetch acquisition despite broader market challenges.

Why it is important: The financial outcomes reveal the immediate impact of Coupang's luxury market entry through Farfetch, while showcasing the company's ability to maintain growth in its established business segments.

Coupang has reported strong fourth-quarter performance with net revenues reaching USD 8 billion, representing a 21% increase on a reported basis and 28% surge on an FX-neutral basis. Even excluding the Farfetch contribution, the company achieved 14% growth on a reported basis and 21% on an FX-neutral basis. The product commerce segment demonstrated solid performance with a 9% rise to USD 6.9 billion, supported by a 10% increase in active customers to 22.8 million. The developing offerings segment showed remarkable growth, surging 296% to USD 1.1 billion, though still maintaining 124% growth when excluding Farfetch. Gross profit for the quarter increased 48% to USD 2.5 billion, while net income reached USD 156 million. For the full year, Coupang achieved net revenues of USD 30.3 billion, marking a 24% increase, with adjusted net income of USD 407 million when excluding exceptional items.

IADS Notes: Coupang's latest financial results demonstrate the company's evolving position in Asian e-commerce, with revenue growing 24% to USD 30.3 billion in 2024 . The developing offerings segment's 296% surge to USD 1.1 billion, alongside Farfetch's contribution of USD 288 million in Q1 2024 , highlights the impact of strategic acquisitions on growth. While Farfetch's losses have significantly reduced from USD 98.7 million to USD 34 million under Coupang's management , the integration has prompted substantial organizational changes, including the departure of Farfetch's founder and key executives . The company's adjusted net income of USD 407 million, excluding one-off items , reflects improving operational efficiency, though challenges remain as competitors form new alliances. Despite maintaining a 57.53% market share in Korean e-commerce , Coupang faces increasing competition, particularly in the luxury segment, as traditional retailers adapt their strategies to the evolving digital landscape.

Farfetch drives Coupang’s double-digit sales growth in fourth quarter