South Korea’s largest e-tailer Coupang Inc. is set to sink deeper into the red in the second quarter of fiscal 2024, the company’s financial report shows. In addition to its costly acquisition of British luxury e-tailer Farfetch, the company is facing a costly legal dispute.
Coupang’s revenue rose 25 percent to around 6.71 billion euros, of which 421 million euros was attributable to Farfetch, the online luxury fashion platform acquired in January. Coupang’s net loss is 77 million dollars, excluding the impact of the Farfetch acquisition and the costs of the recent legal dispute.
Farfetch and legal dispute push Coupang further into the red
Farfetch proves to be a difficult investment for Coupang, with the luxury platform’s quarterly loss siting at 108 million dollars.
In addition, Coupang is the subject of a costly legal dispute. In June, South Korea’s consumer protection agency Korea Fair Trade Commission (KFTC) found Coupang guilty of manipulating online search results and fined the e-commerce giant about 110 million euros. The dispute is said to have cost the company a total of 121 million dollars. The case is still ongoing.
