Fashion e-tailer Farfetch eyes New York listing as online luxury sales surge
Competition for shoppers rises as forecast suggests internet sales – 9 per cent of 2017’s global luxury revenues – will form 25 per cent of all purchases by 2025
Online fashion retailer Farfetch plans to float on the New York Stock Exchange by the end of the year, the London-based company said on Monday as it looks to capitalise on rapid growth in luxury sales on the internet.
Competition to capture online shoppers has picked up among premium brands in recent years, pitting conglomerates such as Louis Vuitton owner LVMH against independent operators as some scramble to make up for a slow move into e-commerce.
Farfetch runs an online marketplace for luxury wares offered by nearly 1,000 brands and boutiques worldwide rather than holding stock itself.
Online sales made up 9 per cent of global luxury revenue in 2017, but are forecast by consultancy Bain to reach a quarter of all sales by 2025.
“This industry is still in its infancy,” Farfetch founder Jose Neves said in the company’s regulatory filing.
The 10-year-old business, which has yet to turn a profit, did not disclose the number of shares it would sell or the offer price per share.
Existing shareholders include China’s JD.com, which invested US$397 million in 2017 – expanding Farfetch’s foothold in the world’s biggest market for luxury consumers.
Farfetch said JD.com had agreed to buy more shares to maintain its stake after the listing, but it did not disclose the size of the holding.
Other investors include publisher Condé Nast and DST Global, run by Silicon Valley-based billionaire Yuri Milner, who had once backed Facebook and online home rental company Airbnb.