Coupang, Inc. has finalized the acquisition of the assets of the global online luxury company Farfetch Holdings plc. Through the provision of $500 million in capital, this acquisition enables Farfetch to maintain its exceptional services for brand and boutique partners, as well as for over four million customers worldwide. Leveraging Coupang's operational expertise and innovative logistics, Farfetch is now well-positioned to pursue steady and thoughtful growth.
Coupang, listed as a Fortune 200 company on the New York Stock Exchange (NYSE: CPNG), is a major global retailer with a mission to revolutionize the lives of its customers. The company offers a range of services, including same-day and dawn delivery of merchandise, delivery of prepared foods through Coupang Eats, fintech via Coupang Pay, and video streaming through Coupang Play. Headquartered in the United States, Coupang conducts its operations and support services in various markets, including South Korea, Taiwan, Singapore, China, and India.
The company's shares have experienced a -2.7% movement and are currently trading at a price of $13.99.
Management provided insight into the acquisition, with a statement emphasizing the potential for Farfetch to continue delivering exceptional services and to pursue growth. Coupang's CEO expressed optimism about the strategic benefits of the acquisition, stating, "We believe that by leveraging Coupang's operational excellence and innovative logistics, Farfetch is now well-positioned to pursue steady and thoughtful growth, benefiting both its brand and boutique partners as well as its global customer base."
The full 8-K submission from Coupang, Inc. regarding the acquisition of Farfetch Holdings plc is available here.
| 2020 | 2021 | 2022 | 2023 | |
|---|---|---|---|---|
| Revenue (MM) | $11,967 | $18,406 | $20,583 | $23,149 |
| Revenue Growth | n/a | 53.81% | 11.82% | 12.47% |
| Operating Margins | -4% | -8% | -1% | 2% |
| Net Margins | -4% | -8% | 0% | 2% |
| Net Income (MM) | -$463 | -$1,543 | -$92 | $429 |
| Net Interest Expense (MM) | $108 | $45 | $27 | $42 |
| Depreciation & Amort. (MM) | $128 | $201 | $231 | $255 |
| Earnings Per Share | -$19.16 | -$1.08 | -$0.05 | $0.24 |
| EPS Growth | n/a | 94.36% | 95.37% | 580.0% |
| Diluted Shares (MM) | 29 | 1,424 | 1,765 | 1,808 |
| Free Cash Flow (MM) | -$183 | -$1,084 | -$259 | $1,840 |
| Capital Expenditures (MM) | $485 | $674 | $824 | $783 |
| Current Ratio | 0.76 | 1.19 | 1.15 | 1.14 |
| Total Debt (MM) | $353 | $283 | $796 | $910 |
| Net Debt / EBITDA | 2.31 | 2.48 | -22.81 | -5.81 |
Coupang has rapidly growing revenues and increasing reinvestment in the business and healthy debt levels. Additionally, the company's financial statements display positive EPS growth and positive cash flows. Furthermore, Coupang has weak operating margins with a positive growth rate and just enough current assets to cover current liabilities.
