Farfetch is tapping into the ballooning sneaker and streetwear trend to grow its business.
On Wednesday, the luxury e-commerce marketplace announced a definitive agreement to acquire Stadium Goods, touted as the world’s premier sneaker and streetwear marketplace, in a $250 million deal.
The deal is expected to help Farfetch expand its sneaker and streetwear offering, while Stadium Goods will benefit from the luxury platform’s technology, logistics, supply and reach.
“The Stadium Goods team has built an incredible company, with a host of talented people, dedicated and loyal customers and remarkable brand equity,” said José Neves, Farfetch founder, CEO and co-chairman. “I am confident that we can help Stadium Goods grow its international presence for sneakerheads around the world through our expertise in technology, logistics and data. Farfetch will benefit from Stadium Goods’ brand, access to supply and a team with a strong passion for and knowledge of luxury streetwear.”
Stadium Goods, which has been selling on the Farfetch marketplace since April, specializes in new and deadstock (brand new, never been worn, second-hand) products, and has seen “strong sales growth” since signing on with the platform. After the acquisition, Stadium Goods will still operate as a standalone brand on Farfetch, and its inventory will be fully integrated into the site and available across all geographies in the Farfetch marketplace.
For Farfetch, the deal increases its supply of in-demand categories, and Stadium Goods will lend its brand authority to the site. The sportswear market was worth $70 billion in 2017, according to Farfetch, so the timing is right to capitalize on a segment the site says is “largely incremental” to its existing addressable market.
“By leveraging Farfetch’s best-in-class cross-border logistics and technology, as well as their luxury prowess, scale and customer base, we will be in a prime position to capitalize on the massive international demand for sneakers and streetwear,” Stadium Goods co-founder and co-CEO John McPheters said. “José and his team share a similar outlook for the future of fashion and retail, and together we believe the countless synergies and perfect cultural fit will make this a match made in heaven.”
The acquisition is expected to be completed in the first quarter of 2019, subject to customary closing conditions.