Streetwear Brands Join Farfetch’s Platform
- Farfetch acquires New Guards Group for £556m
- Addition of luxury streetwear brands to Farfetch’s portfolio
- Off-White, Palm Angels, Ben Taverniti, Unravel Project and Heron Preston join Farfetch
- Farfetch CEO José Neves on the acquisition: ‘expands and advances our vision of being the global platform for luxury’
- Transaction expected to close in Q3 2019
- Record GMV of $488m (£340.2m) and record revenues of $209m (£172m)
- Losses after tax widen from $17.7m to $89.6m (£73.8m)
Farfetch has acquired the parent company of luxury streetwear brand Off-White and other brands in a £556m deal. This acquisition brings new brands to Farfetch’s portfolio, including Palm Angels, Ben Taverniti, Unravel Project, and Heron Preston. The transaction is expected to close in Q3 2019. Farfetch CEO José Neves believes this move advances the company’s vision of being a global platform for luxury fashion.
Factuality Level: 8
Factuality Justification: The article provides accurate and objective information about the acquisition of New Guards Group by Farfetch, including details on the consideration payable, the brands involved, and the potential benefits for both companies. It also includes relevant financial data from Farfetch’s Q2 results.
Noise Level: 4
Noise Justification: The article provides relevant information about Farfetch’s acquisition of New Guards Group and its impact on the luxury fashion industry. It also includes financial details such as the consideration payable for the deal and the expected closing timeframe. However, it lacks in-depth analysis or discussion of the long-term trends or possibilities within the industry, and does not hold powerful people accountable or explore consequences of decisions on those who bear risks.
Financial Relevance: Yes
Financial Markets Impacted: Farfetch and New Guards Group’s acquisition affects the luxury fashion industry, impacting the market value of both companies and potentially influencing other luxury brands’ valuations.
Financial Rating Justification: The article discusses a significant acquisition in the luxury fashion industry between Farfetch and New Guards Group, which has financial implications for both companies involved. Additionally, it mentions Farfetch’s record GMV and revenues, as well as their increasing losses, making it relevant to financial topics.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: Minor
Extreme Rating Justification: There is no extreme event mentioned in the article, and the financial information provided does not meet the criteria for a higher impact rating.
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