Luxury online fashion retailer Farfetch (FTCH) made its debut on the New York Stock Exchange today (Sept. 21) and saw shares jump over 50% in the first hours of trading. The London-based tech unicorn hit a high of $30.60, well above its initial offering of $20 (paywall), which topped its expected range of $17 to $19 per share. Trading closed at $28.45, giving the company a market cap of over $8 billion (paywall).
While Farfetch has yet to reach profitability, the promising debut shows investors are interested in its success at the intersection of e-commerce and luxury. Founded in 2008 by Portuguese entrepreneur José Neves, the firm’s platform connects shoppers to over 700 high-end labels across the globe and ships to nearly 200 countries. Its marketplace currently has 2.3 million customers, and its relationships with elite brands make it a power player in the luxury goods space, estimated to be worth over $300 billion worldwide in 2017.
While investors can always have a change of heart, Farfetch’s niche appeal may prove robust in the long run, especially with luxury labels continuing to resist selling on Amazon $AMZN for fear that brand images could be compromised.
