When premium sneaker and streetwear marketplace Stadium Goods joined Farfetch's e-commerce's platform in May, it was heralded as an expansion of the New York-based retailer's global reach, as well as a solidification of its rightful place in the luxury market. (Previously, consumers were only able to shop Stadium Goods's inventory — like micro-released Yeezy Boosts and limited-edition Air Jordans — directly via its own digital platform or in-store.) The partnership was beneficial for Farfetch, too, as it offered a bona fide "in" to the infamously exclusive, and fast-growing, premium sneaker and streetwear realm.
Now, just seven months later, Farfetch is dialing up its relationship with Stadium Goods on a more massive scale: On Wednesday, the London-based luxury e-marketplace announced that it had acquired Stadium Goods, now valued at $250 million.
According to a press release, both parties appear to be equally and enormously stoked about the symbiotic collaboration that will be made possible between the two. While now a wholly-owned subsidiary, Stadium Goods will continue to operate with its own founding team, but will "benefit from Farfetch's technology, logistics, supply, brand and marketing." Farfetch will further deepen its stake in the lucrative sportswear market (which Farfetch reports was worth up to $70 billion as of 2017).
In a statement, Stadium Goods Co-Founder and Co-CEO John McPheters wrote that he and fellow Co-Founder and Co-CEO Jed Stiller "couldn't be more excited to join the Farfetch family" as the company enters its next stage as a global brand.
"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," said McPheters. "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."
Farfetch very clearly has growth on its mind: After months of speculation, the e-commerce giant officially, and finally, filed for IPO on the New York Stock Exchange, under the ticker symbol "FTCH." (As of this morning's Stadium Goods announcement, Farfetch's stock is now up 3.90 percent on the NYSE.) In February, the company inked a deal with one of the Middle East's largest luxury distributors, making its mass-expansion in the region an imminent reality. Meanwhile, this Stadium Goods acquisition has only turbo-boosted its sneaker and streetwear arm, and that's a very good move to make right now.