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Farfetch Acquires Sneaker Marketplace Stadium Goods for $250 Million

Farfetch founder and CEO José Neves

Photo by Stephen McCarthy/Web Summit via Sportsfile

Luxury clothing online retailer Farfetch has acquired sneaker marketplace Stadium Goods for $250 million in cash and stock, betting on the sneakers market to grow its reach by the acquisition of a 3 year old fast-growing startup.

Founded in 2015 by John McPheters and Jed Stiller, Stadium Goods has enjoyed sales growth since then and joined Farfetch's marketplace April this year, a move that also boosted its sales. The premium sneakers market was worth $70 billion last year and will count as a good addition to Fafetch's existing addressable market.

Stadium Goods Flagship Storefront in SoHo

image : Stadium Goods

Stadium Goods will continue to operate as a standalone brand on Farfetch's platform and will be led by its current management team. It's inventory will be fully integrated into the Farfetch marketplace across all regions including the U.S.

"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 CEO John McPheters said in a press release.

Entrepreneur Mark Cuban (right) is an investor and advisor to Stadium Goods

Photo by Grant Miller for the George W. Bush Presidential Center

"It is clear that there is a great opportunity for our two companies to leverage each other's strengths to go after a larger share of an exciting and fast-growing segment of luxury fashion." Farfetch CEO José Neves also said. "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 has only raised $4.6 million in venture capital prior to this acquisition from investors including The Chernin Group, Forerunner Ventures and entrepreneur Mark Cuban who is also an advisor to the startup.



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