The online luxury fashion marketplace Farfetch has purchased New Guards Group, a brand platform that has launched several global luxury fashion brands, for $675 million. The acquisition extends Farfetch’s capabilities to include design, production and brand development.
Farfetch is seeking to leverage its global consumer base, data insights and boutique network, combining them with New Guards’ support for designers with services such as strategy development, sourcing and production, merchandising, licensing, marketing and growth planning.
“The addition of New Guards’ brand platform brings a creative and industrial dimension to our suite of capabilities,” said José Neves, CEO and Co-Chair of Farfetch in a statement. “Combined with our community of more than 650 boutiques, this enables us to power and promote both new and existing creative names in the luxury industry to build the brands of the future.”
The acquisition brings New Guards brands, including the popular streetwear brand Off-White, into the Farfetch portfolio. Several of the New Guards brands already were present on the platform, but only via boutiques.
Farfetch, which filed for an IPO in August 2018 and acquired Stadium Goods for $250 million in December 2018, announced the acquisition along with its Q2 financial results. The gross merchandise value handled by the platform climbed to $488.5 million, up from $338.5 million during the same period last year. Revenue also increased, from $146.7 million to $209.2 million. However, after-tax losses for Farfetch deepened, increasing from $17.7 million in Q2 2018 to $89.6 million in Q2 2019.