A thread
$FTCH
Richemont Shares Climb After ‘Golden’ Earnings. The Luxury Stock May Shine Brighter.
Source
barrons.com/articles/riche…
... more...
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$FTCH
Richemont Shares Climb After ‘Golden’ Earnings. The Luxury Stock May Shine Brighter.
Source
barrons.com/articles/riche…
... more...
/1
In November 2020, Richemont and Chinese e-commerce giant Alibaba invested $1.1 billion in Farfetch, a London-based online fashion retailer.
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The three groups are partners on a “Luxury New Retail” model that allows Richemont to sell directly to consumers through Alibaba’s popular e-commerce platforms.
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“Online, mobile and distant shopping have proven to be key growth drivers, and we have seen a sharp increase in clients favoring those channels,” said Johann Rupert, Richemont’s chair, founder, and controlling shareholder.
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... “‘Luxury New Retail’ is propelling our Maisons to new levels, supported by our strategic partnership with Alibaba.”
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I believe that the buy side and the sell side underappreciates $FTCH.
The peer groups used to put guardrails on valuations are not quite right, and here's why...
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The peer groups used to put guardrails on valuations are not quite right, and here's why...
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Luxury is different than the rest of e-commerce.
Luxury is different than the rest of commerce in general.
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Luxury is different than the rest of commerce in general.
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FarFetch’s success depends largely on its own brand acting is its signature in a world where brand is everything. This is not a triviality and it will be tested by competitors.
But, for now, yes, FarFetch’s brand is a clear asset.
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But, for now, yes, FarFetch’s brand is a clear asset.
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The company was created to be the technology partner to the luxury market.
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The tech platform, is meant to be multi-tenant. It supports FarFetch marketplace, which is central B2C solution and it also powers B2B solution, where the company leverages that same technology to power similar solutions for other parties within the luxury industry.
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The company differentiates itself by attempting to deliver the most compelling experience and the most compelling selection for consumers.
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That’s the broadest selection of luxury fashion, with the largest audience, delivering an online and a multi brand channel of luxury fashion consumers.
The company goes further to offer unique content — meaning it is unavailable elsewhere.
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The company goes further to offer unique content — meaning it is unavailable elsewhere.
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... that doesn't make luxury different.
This does: In luxury brand is the asset. It is built over time and is measured in billions if not tens of billions for the power players.
And now...
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This does: In luxury brand is the asset. It is built over time and is measured in billions if not tens of billions for the power players.
And now...
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Farfetch's brand has become its signature.
Its success now depends largely on its own brand acting is this signature in a world where brand is everything.
This is an unmatched moat.
And this makes luxury different.
And this makes peer group comps flawed.
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Its success now depends largely on its own brand acting is this signature in a world where brand is everything.
This is an unmatched moat.
And this makes luxury different.
And this makes peer group comps flawed.
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And the world has not seen a broad based multi tenant B2C, B2B luxury platform partnered with the best and most powerful technology companies in the world...
... until now.
Long $FTCH stock and call spreads
Today is 5-21-2021
$FTCH stock is $40
15/15
... until now.
Long $FTCH stock and call spreads
Today is 5-21-2021
$FTCH stock is $40
15/15
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