Farfetch has announced that it is looking to place a IPO on the New York stock exchange. Its technology is industry leading and can be leveraged by many luxury companies. Burberry being one that immediately springs to mind.
As a technology business it runs some very cool pieces of kit and as a luxury online aggregator it will always have something to tempt us with. People will always want a piece of luxury in their lives. However, the valuation the company is looking at comes in at nearly $6 billion dollars and that is a staggering 15 times their current sales.
To put that in context when Alibaba only trades at 11 times sales and Farfetch has yet to make a profit. Overpriced? Only the market can answer that question.
“Fashions fade. Style is eternal.”