Online luxury-fashion retailer Farfetch is reportedly planning to shut down its beauty division on August 31, just over a year after the operation was launched.

Following the acquisition of beauty retailer Violet Grey in January 2022, Farfetch commenced its beauty operation in April the same year.

The branch features more than 100 prestige brands including Chanel, Charlotte Tilbury, Gucci, Olaplex, Prada, Sam McKnight, Tom Ford, Westman Atelier, and Yves Saint Laurent Beaute, among others.

However, there have been reports that the beauty category has encountered various challenges, namely issues with inventory management and a slowdown in consumer demand, resulting in the potential closure of the division.

It has also been reported that Farfetch is making redundancies in its London and New York offices amid a company-wide restructure.

The company posted an 8 per cent increase in revenue for the first quarter ended March 31, but gross profit margin was down year over year.