U.S. media company Condé Nast has offloaded its minority stake in UK e-commerce platform, Farfetch, according British media reports.
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Condé Nast, which publishes fashion magazines Vogue and GQ, has sold its approximate 6 percent vested interest in Farfetch, which is said to be worth some $296 million.
Condé Nast was concerned about the London-based Farfetch’s increasing marketing expenditure, championed by Farfetch CEO, José Neves, The Times newspaper reported.
Both Condé Nast and Farfetch have declined to comment.
The news comes on the heels of Condé Nast chairman Jonathan Newhouse stepping down from the online company’s board in March, 2019.
Condé Nast is one of Farfetch’s premier investors. In mid-2017, the publisher closed its budding ecommerce site Style.com and entered into a partnership with New York Stock Exchange-listed Farfetch.
Under the deal, Farfetch acquired the Style.com trademark, its inventory and customer database, bringing together Condé Nast’s editorial content with Farfetch’s global online retail platform.
Farfetch’s recent developments include launching an augmented retail pilot in Chanel’s new Paris flagship boutique, acquiring Stadium Goods and Toplife, and launching on China’s JD.com platform.
In recent months, Farfetch has added Jil Sander, Etro, and Mulberry to its direct brand offering. And, it has expanded its direct supply brand folio with Versace, Maison Margiela, Valentino, Phillip Plein, Ermenegildo Zegna, and Pucci.
In March, Farfetch also revealed its partnership with fashion influencers including Chloë Sevigny, Riz Ahmed, and Adwoa Aboah to launch Farfetch Communities, homing in on its content strategy.
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In 2018, Farfetch’s sales surged by 56% to $592 million, despite losses widening to $152 million.