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Business
U.S. online luxury reseller The RealReal
Inc is talking to investment banks about the possibility of an initial
public offering (IPO) later this year, people familiar with the matter
said on Friday.
FILE PHOTO: Luxury handbags for sale are displayed at The RealReal shop,
a seven-year-old online reseller of luxury items on consignment in the
Soho section of Manhattan, in New York City, New York, U.S., May 18,
2018. REUTERS/Mike Segar
REUTERS: U.S. online luxury reseller The RealReal Inc
is talking to investment banks about the possibility of an initial
public offering (IPO) later this year, people familiar with the matter
said on Friday.
The company - which specializes in online
secondhand luxury apparel and goods - has sent out a request for
proposals to prospective advisors and underwriters to manage the listing
this year, said the sources, who asked not to be identified because
they were not authorized to speak publicly.
The RealReal declined to comment.
In July last year, The
RealReal raised US$115 million of private funding in a deal led by
Perella Weinberg Partners, with additional participation from new
investor Sandbridge Capital and existing investor Great Hill Partners.
The deal valued the company at US$745 million, according to data
provider PitchBook.
Since then, the company, which was founded in
2011, has focused on expanding its brick-and-mortar presence with
outlets in new areas and more online fulfillment centers.
The
RealReal's success is built on a profitable mix of the boom in
e-commerce, the millennial interest in the price and environmental
benefits of recycled clothing, and the caution of established high-end
brands about what selling their wares on the web can do to brand value.
Fellow e-commerce platform Farfetch went public in last September at
the top of its target IPO price range, raising US$885 million.
(Reporting by Joshua Franklin and Harry Brumpton in New York; Editing by Sonya Hepinstall)
Parent company 'Tapestry' shares soar nearly 12% in Tuesday trading on the sale of COACH bags
Coach
Tapestry says that merchandising and marketing with spokesperson Selena Gomez has given the Coach brand a bump.
GlobalData
Retail declared the Coach brand back to “full health” in a Tuesday note
after Coach parent company Tapestry Inc. reported better-than-expected
earnings that got a boost from North American customers who were ready
to shop.
Tapestry shares
TPR, -0.57%
closed Tuesday up 12%.
Tapestry
reported fourth-fiscal-quarter adjusted earnings of 60 cents per share,
ahead of the 57-cents FactSet consensus, and sales of $1.48 billion,
beating the $1.47 billion FactSet guidance.
Coach’s president,
Joshua Schulman, highlighted the results of the company’s North American
brand-tracking survey, which found that “premium” consumers and
millennials have an improved view of the brand, which he attributed to
the company’s marketing, featuring Selena Gomez; merchandising that
focused on handbags priced in the $300-to-$400 range; in-store
experience; and the reception for its Signature line of bags.
When Tapestry was still called Coach Inc. the company launched an effort to rehabilitate the Coach brand, pulling back distribution at department stores and increasing focus on a higher price point in the interest of the brand’s image.
Neil
Saunders, managing director at GlobalData Retail, declared the
company’s efforts a success after fourth-quarter sales rose 5%.
“In
our view, this is a very respectable result, which, once again,
underlines the return to full health of a brand that once suffered from
ubiquity and excessive discounting,” Saunders said. “The performance in
the U.S. was particularly strong, aided in large part by the more robust
consumer economy, which has spurred spending on luxury products.”
Tapestry’s other brands include Kate Spade and Stuart Weitzman. Tapestry continues to integrate Kate Spade into the fold after it was acquired in 2017. And Stuart Weitzman continued to suffer from operational issues.
Coach