Farfetch UK resuscitated: losses narrow following Coupang acquisition

Farfetch UK Limited has reported a significant narrowing of annual losses for 2024, signaling a stabilising trajectory under the new ownership of South Korean e-commerce giant Coupang, Inc. According to the company's latest statutory financial statements, the loss for the year after taxation was 471.4 million pounds (638.7 million dollars), a 41 percent improvement from the 805.5 million pounds loss recorded in 2023.

The reduction in losses comes despite a 12 percent decline in annual revenue, which fell to 1.08 billion pounds. Management attributed this top-line drop to a deliberate strategic shift away from promotions and toward a "healthier, more sustainable trajectory".

Other factors impacting revenue included the implementation of different group-wide sales models that shifted revenue streams to other Farfetch Group entities. The company said, weakened consumer confidence and a general market slowdown impacted overall spending. Following the acquisition, management initiated aggressive cost-cutting measures, revising contracts, headcount, and internal processes to increase agility.

While the directors expressed confidence in the company's ability to continue operating, the report contains a "going concern" warning. The independent auditors, PricewaterhouseCoopers LLP, highlighted a material uncertainty regarding the company's future, noting that Farfetch UK is dependent on the continued operation and potential further financing of the wider Farfetch Group.

Looking ahead to 2025, the company faces ongoing headwinds from geopolitical challenges, including the potential impact of U.S. tariffs and continued fragility in global luxury demand.