What: Farfetch achieves profitability under Coupang's ownership through renewed focus on marketplace model and customer-first strategy.

Why it is important: The transformation shows how returning to core business principles while maintaining key assets like Browns and Stadium Goods can lead to sustainable growth in luxury e-commerce.

Farfetch has successfully turned its business around under Coupang's ownership, achieving profitability and double-digit growth in its largest market, the United States. The company's marketplace, now home to 1,500 brands, boutiques, and department stores, has proven resilient through a customer-first strategy and renewed focus on its core business model. Despite the departure of some luxury brands following the Coupang acquisition, major names including Prada, Brunello Cucinelli, and Giorgio Armani have maintained their partnerships. The company has also retained and strengthened its retail businesses, Browns and Stadium Goods, while successfully developing its resale service. With revenues of USD 1.7 billion in 2024 and significantly reduced losses to USD 34 million, Farfetch's transformation demonstrates the effectiveness of returning to its original marketplace model while enhancing customer experience and maintaining strategic physical retail presence.

IADS Notes: Farfetch's return to profitability under Coupang's ownership marks a significant milestone in luxury e-commerce transformation. In February 2025, the company demonstrated substantial progress by reducing losses from USD 98.7 million to USD 34 million while maintaining USD 1.7 billion in revenues. This turnaround is particularly noteworthy given the broader reshaping of luxury e-commerce, as evidenced in December 2024 when competitor Mytheresa acquired YNAP to create a EUR 4 billion business. While early 2024 presented challenges, with Farfetch reporting Q1 losses of USD 93 million, the company's successful pivot to a customer-first strategy and renewed focus on its marketplace model has proven effective, validating Coupang's USD 500 million investment and restructuring approach.

Farfetch reboots under Coupang, with a focus on customers and the marketplace