(Bloomberg) -- Coupang Inc. slid in late trading on Tuesday after reporting retail net sales that fell short of Wall Street’s expectations.
Net sales totaled $6.14 billion, up from a year earlier but below analysts’ estimates of $6.24 billion. Operating income totaled $109 million, also slipping below projections. Net income fell in the quarter, reflecting losses at Farfetch, the online luxury company Coupang acquired in January.
Shares of Coupang dropped as much as 8.9% in extended trading.
The disappointing sales overshadowed what was otherwise a strong beat for the Seattle-based online retailer on other metrics. The company’s sales growth was still in the double-digit range for the seventh consecutive quarter, propelled by its nascent business forays such as food deliveries. Net revenue grew 27% to $7.9 billion in the September quarter, the company said in a statement Tuesday, above analysts’ average estimate of $7.8 billion.
Coupang’s stock has climbed 66% this year, aided by its first full year of profit in 2023. The company that helped popularize one-day delivery in Korea is now seeking growth by expanding into areas such as luxury goods. Coupang has also been investing in Taiwan as Alibaba Group Holding Ltd.’s AliExpress and PDD Holdings Inc.’s Temu push into Korea, its biggest market.
Chief Executive Officer Bom Kim said during a post-earnings call that Farfetch was near breakeven on an adjusted earnings before interest, taxes, depreciation and amortization basis in the past quarter, a goal he previously targeted to reach by the end of 2024.
Farfetch’s adjusted loss before interest, taxes, depreciation and amortization shrank to $2 million in the quarter from $31 million in the April-June period.
(Updates with details from the post-earnings call in 6th and 7th paragraphs.)
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