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FarFetch IPO - Investment case Presentation

Research

Publication Date: 20 Sep 2018 - By Robert Prather By Robert Prather
Actionable
Differentiated

IPO & Placements Equity Fundamental Equity USA UK Consumer Technology

 

Farfetch, founded in 2007, is the leading technology platform for the global luxury fashion industry. It operates a global luxury marketplace that connects over 1.1mn consumers in 190 countries to over 980 luxury sellers.

Strengths & Opportunities

  • Growth of eCommerce and generational shift to offer long-term secular tailwinds
  • Steady growth and market share gains
  • Decreasing customer acquisition costs
  • Customer retention and increasing LTV

Risks & Concerns

  • Crowded industry with competitors including online marketplaces, aggregators, luxury retailers and Amazon
  • Alibaba and JD.com investing in their own luxury eCommerce platforms in China - the growth engine
  • Take rate may be pressured
  • History of losses and cash burn, which may continue to be a concern over the next few years

 

Farfetch IPO

Source: VR Fundamental

Pages: 54

Released: 20 Sep 2018

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The Author

Robert Prather

Equity Analyst

Consumer, Technology, Telecom & Media, Industrials

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