Farfetch buys New Guards Group for $675m
Written by Peter Walker
Farfetch has acquired New Guards Group for $675 million.
The Milan-based holding company was founded in 2015 and has launched luxury streetwear brands including Off-White, Palm Angels and Heron Preston.
The cash-and-stock deal is expected to close in the third quarter, with Farfetch stating that it plans to grow the various brands’ distribution through directly-operated retail stores and e-commerce websites.
New Guards co-founder Davide De Giglio will remain in the role of chief executive, while Andrea Grilli will stay on as chief commercial officer.
Farfetch has recorded widening losses on the back of growing investment in technology, infrastructure and partnerships with global brands and retailers. It currently has partnerships with the likes of Mulberry, Burberry, Chanel, Net-A-Porter and JD.com.
This week, it reported second-quarter revenue of $209.3 million, a 43 per cent year-on-year increase, while gross merchandise value rose 44 per cent to $484 million.
However, losses after tax widened from $17.7 million to $89.6 million.