💰Coupang's Q2 Sales Surge
Coupang, the South Korean e-commerce giant, reported a 25% rise in sales for Q2 2024, reaching $7.32B. Adjusted for currency effects, this growth stood at 30%. Farfetch, acquired in January 2024, contributed $460M to this surge.
📉Farfetch's $108M Loss
Despite boosting sales, Farfetch posted a significant loss of $108M in Q2. This negatively impacted Coupang's overall financial performance. The acquisition, meant to strengthen Coupang's fashion market presence, has become a financial burden.
💸Legal Woes Add to Losses
Coupang also faced a $121M provision for a fine by Korea's Fair Trade Commission (KFTC). The KFTC penalized Coupang for manipulating online search results, further pushing the company into a net loss of $105M, compared to a $145M profit last year.
📉Impact on Shareholders
For shareholders, the blow was severe. The loss attributable to them was $77M, a sharp contrast to the previous year's profits. Adjusted for Farfetch's loss and the fine, Coupang's profit still fell by 14% to $124M, showing a challenging quarter.
Will Coupang recover from Farfetch's financial drag?
