Conde dumps Farfetch stake over marketing 'overspend'
Conde Nast has ended its relationship with Farfetch following mounting losses and spiralling marketing spend.
The publisher had owned a 6 per cent stake in the luxury fashion retailer, in a deal that saw Conde direct readers of its online publications to the Farfetch site.
But it has now exited the deal amid concerns about what some have seen as marketing overspend at Farfetch.
The retailer has ploughed money into marketing, in a move that has seen an almost 60 per cent increase in sales.
Revenues rose to £475 million last year.
But at the same time losses have ballooned, reaching nearly £123 million in the same period.
Farfetch says its additional costs are necessary in order to secure the technology it needs to guarantee future growth. But investors have become cautious about the company's trajectory.