Farfetch UK Limited has filed its accounts for 2024 (only five months after its very-late 2023 numbers were released) and they show the business continuing to make a loss.
Photo: Pixabay – Photo: Public domain
Before the figures though, there needs to be an explanation: Farfetch UK isn’t the entire Farfetch operation. It’s now owned by South Koreas’s Coupang, but as the parent group doesn’t break out Farfetch figures separately, even within the limits of the information these accounts offer, it does give clues to how the wider business is progressing.
The accounts cover the 2024 calendar year, which was a big one for Farfetch as Coupang acquired it that January.
The net loss for the year was $471.4 million, which looks pretty huge but was at least a lot smaller than the 2023 net loss of $805.5 million. Do note that the company reports in US dollars having previously been listed on the New York Stock Exchange, despite it’s UK/Europe HQ.
Its loss narrowed despite revenue for the year decreasing by 12% to just under $1.078 billion.
One of the key reasons for the falling revenue was because the business took the strategic decision to “significantly” move away from its reliance on promotions in the belief that this will result in a “healthier, more sustainable trajectory” for it.
Additionally, there was the implementation of new sales models across the group, which resulted in a change in the mix of first-party and third-party revenue streams. This resulted in other group entities contracting directly with partners instead of the company itself.
Another key reason for the revenue fall in 2024 was one that was beyond its control with the overall market continuing to decline.
The company said revenue divided into $88 million in the UK (up from $73.5 million a year earlier); $271.7 million in the rest of Europe (down from $435.8 million); $247.9 million in the US (down from $259.6 million); and $470.3 million in the rest of the world (up from $456.5 million).
It added that the main reason for the smaller loss this time was due to a reduction in the impairment charge during the year. In 2023 the impairment charge had been more than half a billion dollars while in 2024 it was ‘only’ a little over $33 million.
Management also put cost reduction initiatives in place and said this helped boost its net cash position quite significantly.
Meanwhile, the UK-registered Farfetch China Ltd’s accounts have also been filed and show revenue of $63.9 million for the period, down from $116.6 million. The net loss was also narrower at $44.1 million after $113.9 million the year before.
That particular company operates the marketplace in the Greater China region.
Ambitious outdoor lifestyle brand Finisterre as appointed a new head of retail, with Joe Ward joining on 14 January from Superdry.
Finisterre
Ward brings nearly 18 years’ experience at the global fashion retailer where he was head of international retail and global retail support for two years until his departure.
Other roles there included store manager, area manager, VM operations manager before taking on those wider senior global leadership roles that took in overseeing operational strategy across the brand’s global retail estate.
Announcing the move to Finisterre on LinkedIn, Ward said: “Super excited about joining this incredible, purpose-led brand.”
Will Sheane, CEO of Finisterre, is also quoted as saying: “With his deep international retail experience and track record of building great teams, he’s perfectly placed to help us keep elevating how our community experiences Finisterre as we grow. Lots in store for 2026!”
And that teasing outlook for 2026 follows a “landmark year” for the Cornish born brand reflecting the brand’s “commitment to bringing functional and sustainable apparel to key outdoor and coastal communities across the UK”, that included Finisterre’s London flagship and openings in Brighton Holt, Norfolk, locations are in Cambridge, Cardiff and Poole and its first venture north to Leeds.
Italian luxury brand Brunello Cucinelli, known for its $3,000 cashmere sweaters, bet big on department stores, a strategy now in the spotlight as iconic US High Street retailer Saks struggles to pay back debts.
A look by Brunello Cucinelli – Brunello Cucinelli
Saks Global, created after Saks Fifth Avenue parent Hudson’s Bay Company bought rival Neiman Marcus, saw its CEO depart this month, amid reports it was preparing for bankruptcy after missing an over $100 million interest payment. That’s put a harsh spotlight on the strategy of firms like Cucinelli that have bet heavily on high-end department stores, whose future is more uncertain in a weak global luxury market where many brands have shifted towards their own outlets.
The firm, however, is doubling down. Brunello Cucinelli, founder and chairman of his namesake firm, told Reuters that the company was sticking with its strategy, which gives a strong emphasis to the wholesale channel.
He said that so far it had only faced a one-month delay in payments from Saks Global, and at the operational level had not had any issues with the retailer. “We don’t foresee any economic risks, except for extremely limited ones,” Cucinelli told Reuters by phone. “And bear in mind, they would be the first (losses) in 45 years of business. Every year, we lose 0.1% from our multi-brands, which is practically nothing.”
Cucinelli is, however, more exposed than most. Co-CEO Luca Lisandroni in December lauded the cashmere king’s ties with Saks and heralded some of its “best results ever” in its stores around the US, “demonstrating the great centrality of this client in the global luxury landscape.” The Italian firm makes some 36% of its revenues from the wholesale channel and around 64% from its own retail outlets, relying more heavily on multi-brand distribution than some key luxury peers, according to data compiled by Reuters.
Over the past decade, luxury groups have shifted toward their own retail networks, giving them more control over pricing, inventory, and margins. Retail now accounts for some 90% of sales by Prada, 81% at Moncler, 87% at Zegna, and 75% at Gucci-owner Kering.
Cucinelli, which targets some of the highest-end wealthy customers, has proved to be among the most resilient brands in the industry hit by lower demand. Sales in both the wholesale and retail channel grew in the first nine months of 2025 and the brand raised its full-year revenue growth forecast to 11–12% in December.
Morningstar analyst Svetlana Menshchikova said that a possible Saks bankruptcy or restructuring could lead to “delayed payments, limited bad-debt exposure and maybe some lost sales if the department stores would fail to replenish their stock.”
“The company has consistently highlighted the US wholesalers as key clients and an integral part of its brand image and business model,” she said. “Although we do not expect a severe impact on the company given Cucinelli’s global footprint and strong balance sheet.”
Saks Global’s financial troubles reflect wider challenges in the $417 billion global luxury market, which is battling to emerge from years of stalling sales. The US luxury retailer, which operates Saks Fifth Avenue, Neiman Marcus, and Bergdorf Goodman, missed an interest payment due at the end of December and it is preparing to file for bankruptcy, the Wall Street Journal reported last month. Founder Cucinelli credited department stores in part for that and said he had faith in Saks and the 400 multi-brand stores he said the brand worked with worldwide.
“We do 40% of our business with multi-brands and I’m absolutely delighted,” he said, calling department stores the “true custodians of the brand.”
“To make it even clearer how much we believe in multi-brand (stores), hypothetically speaking, I would buy Saks Global tomorrow if I were an interested investor.”
Recycling Europe Textiles (RET), the European association representing the textiles reuse and recycling sector, has urged the EU Commission to introduce ecodesign rules mandating the presence of at least 10% of recycled fibre content in textile products from 2028.
RET believes that the forthcoming European regulation on ecodesign for textile products is a decisive opportunity to accelerate the industry’s transition to a truly circular model. In a position statement published on January 7, the organisation underlined that introducing mandatory recycled-content requirements is essential to strengthen the recycling industry and respond to the growing pressure on textile-waste collection and treatment systems in Europe.
According to RET, the sector currently faces a critical juncture, characterised by an excess of low-quality textile waste, weak demand for recycled fibres, and funding constraints. The situation is likely to worsen as the separate collection of used textiles became mandatory in Europe in January 2025, and given the growing consumption of apparel products driven by the ultra-fast-fashion phenomenon. Without clear market signals, RET warned, increasing volumes of used textiles risk being incinerated or sent to landfill, rather than reutilised to make new products.
To reverse this cycle, RET is advocating a strict, targeted definition of ‘recycled content’ that prioritises post-consumer textile waste generated in Europe, excludes open-loop sources such as PET bottles, and discourages the generation of industrial textile waste. The aim is to promote genuine fibre-to-fibre circularity and ensure that recycling efforts focus on the main textile-waste stream in the European market.
Targets-wise, RET is proposing the progressive introduction of mandatory recycled-content requirements for textile products, starting with a company-portfolio-level approach and moving to product-level targets from 2030. The proposals stipulate a minimum of 10% of recycled fibres by 2028, 15% by 2030, and 30% by 2035, with a growing share sourced from European post-consumer waste. These targets, according to RET, would send clear predictive signals to the market, creating steady demand for recycled fibres and unlocking investment in new sorting and recycling technologies.
Another mainstay of RET’s position is the need for robust and credible verification systems. The association supports a hybrid model combining chain-of-custody systems, mass-balance methodologies and greater traceability, especially at the collection and sorting stages. In this context, the EU’s Digital Product Passport is regarded as a key tool for strengthening transparency, as it requires clear information on the amount, type and origin of the recycled content incorporated into textile products.
“Mandatory recycled-content targets are among the most effective policy instruments for transforming the European textile industry. By promoting genuine fibre-to-fibre circularity, the European Union can reduce resource extraction, boost innovation and recycling capacity, and support a resilient and competitive European textile recycling sector,” concluded RET.
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Politics8 years ago