London-based marketplace that targets luxury market to list in New York

This article is more than 2 years old

This article is more than 2 years old

London-based online fashion retailer Farfetch is to float on the New York Stock Exchange as it seeks to capitalise on rapid growth in luxury sales on the web.

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 firms scramble to make up for a slow move into e-commerce.

Farfetch runs an online marketplace allowing people to buy luxury clothes or accessories from nearly 1,000 brands and boutiques worldwide, differing from some other models where sites hold stock.

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The company, which has yet to turn a profit in its 10-year history, did not disclose the number of shares it would sell or the offer price per share, but said the listing would take place in 2018.

Goldman Sachs, JP Morgan, Allen & Co, UBS, Credit Suisse, Deutsche Bank, Wells Fargo, Cowen and BNP Paribas are underwriting the flotation.

Facebook Twitter Pinterest Online fashion retailer Farfetch’s headquarters in London Photograph: Toby Melville/Reuters

Farfetch, which competes with other online luxury platforms including MyTheresa or MatchesFashion, has also expanded as a technology firm, working with brands such as France’s Chanel to link their stores to digital services including chatrooms.

It has also paired up with labels such as Britain’s Burberry to help make its inventory more widely available online.

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Other firms have been putting resources into their own e-commerce ventures, including Cartier parent Richemont, which sealed a deal this year to take control of Farfetch rival Yoox Net-A-Porter.

Farfetch is still in the red, even as revenues grew 59% to $386m (£302m) in 2017, the regulatory filings showed.

Its losses deepened to $68m in the first half of 2018, from $29m in the same period last year, as investments and costs increased.