Since Farfetch was acquired by South Korean company Coupang, it has been difficult to assess the British luxury online retailer’s performance. This was particularly because the parent company was struggling with broader challenges in the market. However, in the recent fourth quarter fiscal 2025 earnings conference call, CEO Bom Kim confirmed that the situation has improved.
“At Farfetch, this is the first quarter since our acquisition that we have achieved positive year-over-year revenue growth with positive overall results,” said Kim. “We see a real opportunity to create value for luxury customers worldwide by combining Farfetch’s vast inventory with a best-in-class shipping and returns experience.”
This announcement comes just over two years after Coupang acquired Farfetch. The transaction was heavily criticized at the time by disgruntled shareholders who claimed the deal had “destroyed” the company’s value. In 2023, Farfetch faced increasing financial problems, with its UK business alone posting an annual loss of 805.5 million British pounds (922.1 million euros). This loss decreased significantly to 471.4 million British pounds after tax by 2024.
Farfetch’s performance had a significant impact on Coupang’s financial condition. A recent data breach further exacerbated the group’s challenges. In the fourth quarter, covering October to December 2025, Coupang’s operating profit fell 97 percent year-on-year to $8 million (7 million euros). The company suffered a net loss of $26 million after posting a profit of $131 million in the same quarter last year. Earnings before interest, taxes, depreciation and amortization (EBITDA) adjusted for special items fell by 36.6 percent to $267 million.
This happened despite an 11 percent increase in total sales to $8.8 billion (7.6 billion euros). Coupang cited the data breach as a key factor in the negative business performance, as it affected sales growth, the number of active customers and membership subscriptions. According to the group, the situation has now stabilized and a recovery can already be observed in the first quarter of the current financial year.
CFO Gaurav Anand presented the outlook for the future in the conference call: “Looking ahead to next year, we expect growth and profitability trends to remain subdued over the next few months,” he explained. “The impact of the data breach will diminish over the course of the year as we move through this transition and continue to deliver the experience our customers expect.”
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