The London-based luxury fashion retailer Farfatch has filed for an IPO, potentially seeking a valuation as high as $5 billion with a listing on the New York Stock Exchange under the ticker FTCH.
In 2017, Farfetch generated revenues of $385 million (up 59 percent on the 2016), although it’s still not profitable, reporting an after tax loss of just over $110,000. Farfetch is different from traditional retailers and doesn’t hold any stock itself, instead working alongside brands and boutiques and acting as a marketplace. This method allows it to forgo any risks associated with excess stock and trend forecasting, although it also means it makes a lower margin on its sales, as it has to share the profit with the boutique.
“We are a technology company at our core and have created a purpose-built platform for the luxury fashion industry. Our platform consists of three main components: applications, services and data,” the company wrote in the filing.
Farfetch was founded in 2008 by entrepreneur Jose Neves and currently has offices in 11 cities around the world.