FARFETCH’s Post

FARFETCH was supposed to acquire Richemont’s stake in YNAP and pay Richemont 64.2 million Farfetch #shares (in place of cash). Richemont wrote down €2.7 billion as a result. Richemont and its maisons, along with YNAP, would adopt Farfetch Platform Solutions (FPS) as part of the #deal. This arrangement means that Richemont’s payout is dependent on Farfetch’s share value, which was already on the decline. Shares have fallen 83% in the last year. When the deal was approved, Richemont’s intended stake in Farfetch was valued at $120 million rather than the $615 million indicated at the time of the deal. Richemont released a statement last week, reminding #shareholders that it “has no financial obligations towards Farfetch and notes that it does not envisage lending or #investing into Farfetch”. In its statement, Richemont highlighted that neither its maisons nor YNAP had yet adopted FPS and that they remain separate. #luxury #fashion #ecommerce #sales #commerce #retailing #branding #retail #channels #marketing #digitalmarketing #management #markets #business #fastfashion #networking #money #future

It's really astonishing and sad to read how seemingly quickly and to such an extreme FARFETCH's fortunes have turned. Not so long ago they were championing their focus on tech (including some interesting development work in Web3) to elevate them as a luxury fashion marketplace, and now they are £billions in debt with existing investors refusing to dip further into their pockets. BUT, they have a buyer and it will be interesting to see what becomes of the business, as well as subsidiaries such as Browns.....watch this space. #luxuryfashion #investment https://lnkd.in/eKPDRXSb

Farfetch: the story is over As the curtains close on the pioneering journey of Farfetch, one cannot help but reflect on the incredible impact it had on the luxury fashion industry. Farfetch was not just a retailer; it was a visionary platform that redefined the connection between technology and style, bringing the finest designer pieces to doorsteps worldwide with just a click. The end of Farfetch is a stark reminder of the ever-changing landscape of e-commerce and how even the brightest stars must sometimes dim. As we bid farewell, let's remember the lessons in innovation, customer engagement, and global reach that Farfetch exemplified. The company may be concluding its chapter, but the paths it paved will undoubtedly inspire future entrepreneurs and businesses to dream big. RIP Farfetch. Your first chapter helped light the way, even as the final pages remain unwritten. Luxury's digital journey continues... #fashioninnovation #farfetch #ecommerce #fashion #TheFinalStitch #FashionJourney #EndOfAnEra #NewBeginnings #howardpartners

Farfetch: the story is over As the curtains close on the pioneering journey of Farfetch, one cannot help but reflect on the incredible impact it had on the luxury fashion industry. Farfetch was not just a retailer; it was a visionary platform that redefined the connection between technology and style, bringing the finest designer pieces to doorsteps worldwide with just a click. The end of Farfetch is a stark reminder of the ever-changing landscape of e-commerce and how even the brightest stars must sometimes dim. As we bid farewell, let's remember the lessons in innovation, customer engagement, and global reach that Farfetch exemplified. The company may be concluding its chapter, but the paths it paved will undoubtedly inspire future entrepreneurs and businesses to dream big. RIP Farfetch. Your first chapter helped light the way, even as the final pages remain unwritten. Luxury's digital journey continues... https://lnkd.in/dDYskrMd #fashioninnovation #farfetch #ecommerce #fashion #TheFinalStitch #FashionJourney #EndOfAnEra #NewBeginnings

🧗🏾♂️In a challenging year for #luxuryfashion, FARFETCH and MATCHES faced distinct paths. #Farfetch, after a significant valuation drop and falling revenues, was bolstered by a $500m investment from South Korean retailer Coupang. This move could pivot Farfetch's focus to Asia's booming luxury market, capitalizing on Coupang's strong online presence. Meanwhile, #Matches, after a tumultuous few years and leadership changes, might be acquired by Frasers Group for £50m, a scenario reflecting the current cautious environment in luxury retail mergers and acquisitions. 🔮The future for both remains a keen point of interest in 2024's luxury fashion landscape.

What does the future hold for FARFETCH ? My view in this City AM piece linked below, with my full comment here: ‘Though an innovative concept when it started out in 2008, there are now a number of online luxury marketplaces that compete with Farfetch, and that - coupled with declining demand over the past few years in core markets such as Russia and China - has impacted performance.' 'Though shares have jumped recently with talk of Jose Neves potentially taking the business private, shares are still heavily discounted vs their initial IPO. With gross merchandise volume lower than initial projections (7% vs an initially forecast 20%), declining gross margin and high levels of debt, it is clear that much work needs to be done to turn this under-performance around, whether the business remains public - or goes private.’ #farfetch #cityam #retail #jdmretail https://lnkd.in/e6pgbhVw

For those of you interested in e-commerce and luxury fashion, you will likely have seen that FARFETCH was acquired by Coupang for £400m towards the end of last year, after it started to experience liquidity challenges. Yesterday, it was announced that Jose Neves, Farfetch's founder and CEO has stepped down from the role with immediate effect. It is understood that Neves' key people have also exited the business, as Coupang look to refresh the management team. For anyone interested, Vogue Business have published an interesting article on Neves' departure, which can be found here: https://lnkd.in/eGu-PiAF? It talks about luxury brands' struggles with e-commerce and its need to keep up with the quickly evolving landscape that luxury fashion has seen recently, especially in the last couple of years. With Coupang taking control of the Farfetch management, it will give hope to people that Farfetch does have a future, however with job cuts likely to be announced in the UK on Monday, it does beg the question as to how much the business will pivot away from its previous leadership under Neves. Further info available through Retail Gazette here: https://lnkd.in/emZtjbu3 #turnaround #restructuring #luxuryfashion #retail #ecommerce

I’ve recently been reading several articles highlighting the challenges that FARFETCH are facing. In 2023, the company's shares have plummeted by 97% in two years, driven by decreased demand in key markets like the US and China. This situation, compounded by lower-than-expected revenue and analysts' concerns, points to a period of uncertainty for Farfetch. It's a crucial time for Farfetch, and their response to these challenges will be pivotal for their future trajectory. It’ll be interesting to see how this plays out… more information below https://lnkd.in/exVQ_ttz

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Feeling a bit like the plot twist in a gripping thriller as we close out the week. The news of the Farfetch sale and the subsequent departure of CEO José Neves has sent shockwaves through the retail world, underscoring just how tough the current retail climate is. But amidst the turbulence, there's a deeper narrative at play here - Farfetch raises compelling questions about the future of ecommerce. Is this a mere chapter in the saga, or could it herald the end of an era? Stay tuned as we navigate these uncertain waters together. Because in times of change, opportunity awaits those who dare to seize it. https://lnkd.in/dZs_yzmc #ecommerce #RetailRevolution #EcommerceEvolution #FutureForward