(Bloomberg) – Coupang Inc. fell in late trading on Tuesday after reporting that retail net sales fell short of Wall Street expectations.
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Net sales totaled $6.14 billion, up from a year earlier but lower than analyst estimates of $6.24 billion. Operating income totaled $109 million, also below expectations. Net profit fell in the quarter due to losses at Farfetch, the online luxury company that Coupang acquired in January.
Shares of Coupang fell as much as 8.9% in extended trading.
The disappointing sales overshadowed what was otherwise a strong performance for the Seattle-based online retailer on other measures. The company’s revenue growth remained in double digits for the seventh consecutive quarter, driven by emerging business activities such as food delivery. Net sales grew 27% to $7.9 billion in the September quarter, the company said in a statement Tuesday, above the average analyst estimate of $7.8 billion.
Coupang shares are up 66% this year, helped by its first full year of profit in 2023. The company that helped popularize one-day delivery in Korea is now looking for growth by expanding into areas such as luxury goods. Coupang has also invested in Taiwan as AliExpress from Alibaba Group Holding Ltd. and Temu of PDD Holdings Inc. Enter Korea, the largest market.
Chief Executive Officer Bom Kim has said he aims for Farfetch to be close to positive adjusted earnings before interest, taxes, depreciation and amortization on a run-rate basis by the end of 2024.
(Updates with context to share the decline everywhere)
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