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Online-fashion is trending among investors

Investment from 3,500 USD

Expires: 18/04/2019

Expected
yearly returns
132%

Farfetch is an international high-tech online platform that brings together over 3,000 premium clothing brands, boutiques, and customers worldwide, with shipping to 190 countries. Farfetch earns commissions from sales through the trading platform and does not own the goods, but rather connects buyers and sellers. Founded in 2008, the company has over 3,000 employees and its headquarters is located in London. Its revenue distribution is highly diversified: Europe, the Middle East, and Africa — 40.3%; Asia-Pacific — 34.3%; the Americas — 25.3%.

Drivers of growth:

  • Continuing to implement a successful strategy focused on online sales in the upmarket segment. According to forecasts of the international consulting company Bain, the global market for high-end clothing and accessories will have good growth prospects in the near future:
    • In 2018 its turnover will reach 281 billion EUR, and by 2025 it will grow to 390 billion EUR.
    • The share of online sales in global sales of luxury apparel and accessories will increase from 9% in 2017, to 25% by 2025. At the same time, it is expected that the global online sales in the upmarket segment will continue to grow at an accelerated pace, an average of 26% per year from 2003-2017 (YoY) (the annual growth rate has never fallen below 12% (YoY) for this period).
    Active market growth will help improve Farfetch's financial performance.
  • The company continues to actively develop and demonstrate high growth rates. Revenue increased as follows: in the first half of 2018 by 55.0% (YoY), in 2017 by 59.4% (YoY), and in 2016 by 70.1% (YoY).
  • Farfetch shares are traded at a 55% discount to peers using the P/BV ratio.
  • Minimal risks to financial stability: the ratio of total debt to total assets is 0.0%.

Investment period ends:
18/04/2019

Expected yield is calculated according to 88% capital protection and the price of the base asset at expiry, equal to 38 USD.

Technical Analysis:

An upwards trend is forming with regards to Farfetch's share price. The following are significant technical levels: 31.80 USD; 30.42 USD; 27.77 USD; 26.47 USD; 24.85 USD; 23.33 USD; 22.10 USD; 20.30 USD; 19.09 USD.

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