It’s been over a year since luxury e-retailer Farfetch entered the beauty business, but they’ve already decided to bow out. The company will stop selling beauty products on August 31 according to multiple sources.
Farfetch first made moves in the space in January 2022 when it acquired high-end beauty retailer Violet Grey. A few months later, it debuted its online beauty store, selling high-end brands such as Augustinus Bader, Dr Barbara Sturm and Charlotte Tilbury.
According to Market Watch, shares of Farfetch Ltd. dipped over 30% and the company reported lower-than-expected sales for its second quarter. The business posted a loss of US$281 million, with revenue dropping to US$572 million, compared to US$579 million a year ago.
It can be extremely challenging to navigate the beauty market, and this news further proves just that. Farfetch, an established player, struggled to make a name for itself in the beauty market, because tapping into the industry is easier said than done.
