London-based luxury online marketplace Farfetch filed for an IPO on Monday along with also plans to list on the brand-new York Stock Exchange under the ticker FTCH.
Sources previously told CNBC the company will be aiming for a valuation as high as $5 billion.
In fiscal 2017, Farfetch generated revenue of $385 million, a 59 percent jump over the previous year. the item reported an after-tax loss of $112,275, down coming from a loss of $81,459 the previous year.
Farfetch along with also peer Yoox Net-a-Porter have been able to thrive by occupying a niche of which Amazon has yet to be conquer: luxury fashion. the entire world’s most elite labels have resisted selling on the Seattle giant’s website, suspicious of its ability to maintain the integrity of their brand.
The global market for personal luxury goods was estimated to be worth $307 billion in 2017, according to the filing, citing Bain. the item will be anticipated to reach $446 billion by 2025.
Cementing the value luxury companies see inside upper echelons of online retail, Cartier-owner Richemont earlier of which year offered up to 2.8 billion euros ($3.4 billion) to buy the stake of Yoox the item did not previously own.
Unlike typical retailers, Farfetch does not own the inventory the item sells, however rather serves as a conduit for brands along with also boutiques. As such, the item can avoid the complicated task of predicting what customers want along with also the expense of holding the item in stock. Such “marketplace” companies, like eBay, Amazon, JD.com along with also Alibaba often trade at a higher premium than traditional retailers. A $5 billion valuation would likely take advantage of of which premium, pegging Farfetch against them.
Farfetch touts itself as a marketplace for the global fashion consumer. the item connects shoppers to over 700 brands along with also boutiques internationally, selling established lines like Gucci along with also emerging ones like Gabriela Hearst. the item prides itself on curation along with also inspiration, allowing shoppers to navigate by brand, item or its stylized edits. the item express ships to more than 190 countries.
“We are a technology company at our core along with also have created a purpose-built platform for the luxury fashion industry. Our platform consists of three main components: applications, services along with also data,” the company wrote inside filing.
Farfetch has grown through many partnerships of which have helped the item broaden its distribution, offerings along with also capabilities. Its deal with JD.com in Asia along with also the Chalhoub Group inside Middle East provide distribution along with also logistics support in those respective regions.
Its partnership with Conde Nast, announced last year, integrates the magazine publisher’s content with Farfetch’s shopping platform. Its Style.com website also currently redirects to Farfetch.
In 2015, Farfetch purchased London fashion boutique Browns. the item will be using Browns as one of its testing grounds for brand-new retail technology in what the item calls the “store of the future.” Offerings include touch-screen-enhanced mirrors along with also connected clothing racks.
Farfetch also launched Black along with also White, an infrastructure platform of which luxury brands can use to develop their own e-commerce business.
Farfetch was founded in London in 2008 by Portuguese entrepreneur Jose Neves. the item has offices in 11 cities, including London, Tokyo along with also Los Angeles.
Its global investor base includes France’s Eurazeo along with also Singapore’s sovereign wealth fund Temasek.