Condé Nast pulls £234 million investment in Farfetch amid management concerns
Condé Nast, the publisher behind Vogue and GQ, has sold its £234 million stake in online fashion giant Farfetch due to concerns over how it is managed.
According to the Sunday Times the publishing house, which also owns Wired, Vanity Fair and Glamour, has sold its six per cent share in the tech-led online fashion retailer after establishing itself as one of the site’s earliest investors.
Following the departure of Condé Nast’s chairman Jonathan Newhouse from Farfetch’s board in March, it has now expressed its concerns over the amount of money Farfetch is spending on marketing.
Despite the vote of no confidence, Farfetch told the Sunday Times it was confident its strategy of investing in technology and “consumer engagement” would drive future growth.
For the year ending December 31, the London-based, New York-listed online retailer saw revenues climb 56 per cent year-on-year to $602 million (£454 million).
However, it made a full-year loss after tax of $155.5 million (£117.4 million), a deeper figure compared to the previous year’s loss of $112.3 million (£84.8 million).
It attributed these losses to costs associated with its IPO listing and a swathe of tech-focused tie-ups and acquisitions.
Aside from its expanding partnership with Chinese tech giant JD.com, which it launched a flagship store on last month, Farfetch acquired streetwear and sneaker marketplace Stadium Goods in December 2018 and struck deals with both Chanel and Harrods over the past year.
Condé Nast also entered a commercial partnership with Farfetch in 2017, which saw it redirect its online readers to its website.