Korean e-commerce leader Coupang Inc. reported a 27% surge in third-quarter revenue, while profits declined as costs mounted from its expansion into luxury retail through the Farfetch acquisition.
The Seattle-based company posted sales of $7.9 billion in the quarter, compared with $6.2 billion a year earlier. Net income fell to $64 million from $91 million last year, partly due to operating losses at Farfetch, which Coupang acquired in January.
Excluding Farfetch, Coupang’s core business showed stronger performance with adjusted net income of $108 million. The company’s main Product Commerce segment grew 16% to $6.9 billion in revenue, while active customers increased 11% to 22.5 million.
“Our newer offerings like luxury retail are examples of massive growth opportunity,” CFO Gaurav Anand said, noting Farfetch reached near break-even profitability earlier than planned.
The company’s Developing Offerings segment, which includes Farfetch and food delivery service Coupang Eats, saw revenue surge 347% to $975 million but posted an adjusted EBITDA loss of $127 million.
Operating cash flow for the trailing twelve months dropped to $1.8 billion from $2.6 billion, which the company attributed to non-recurring working capital benefits in the prior period.
