You have #SHOP #MELI #SE #BABA and #AMZN? https://abs.twimg.com/emoji/v2/... draggable="false" alt="🛍" title="Einkaufstaschen" aria-label="Emoji: Einkaufstaschen"> and believe in the shift to remote “everything”

Here is an UNKNOWN COMPANY that has gained 180% https://abs.twimg.com/emoji/v2/... draggable="false" alt="🔥" title="Feuer" aria-label="Emoji: Feuer"> in 1 YEAR and is growing by 75%+ https://abs.twimg.com/emoji/v2/... draggable="false" alt="📈" title="Tabelle mit Aufwärtstrend" aria-label="Emoji: Tabelle mit Aufwärtstrend">

It is going big on China https://abs.twimg.com/emoji/v2/... draggable="false" alt="🇨🇳" title="Flagge von China" aria-label="Emoji: Flagge von China">and has merged its Chinese operations with $JD

Short Thread https://abs.twimg.com/emoji/v2/... draggable="false" alt="👇" title="Rückhand Zeigefinger nach unten" aria-label="Emoji: Rückhand Zeigefinger nach unten">

Farfetch $FTCH is an online luxury shop that connects buyers with over 1.300 luxury boutiques https://abs.twimg.com/emoji/v2/... draggable="false" alt="💎" title="Edelstein" aria-label="Emoji: Edelstein">

It also offers e-commerce tools https://abs.twimg.com/emoji/v2/... draggable="false" alt="📟" title="Pager" aria-label="Emoji: Pager"> such as logistical intelligence and key stats to shops listed on its website

Its revenue https://abs.twimg.com/emoji/v2/... draggable="false" alt="💵" title="Banknote mit Dollar-Zeichen" aria-label="Emoji: Banknote mit Dollar-Zeichen"> comes from the sales of more than 3.000 luxury brands

https://abs.twimg.com/emoji/v2/... draggable="false" alt="📈" title="Tabelle mit Aufwärtstrend" aria-label="Emoji: Tabelle mit Aufwärtstrend"> For Q2 ’20, revenue stood at $364m, coming from $209m a year earlier (74% YoY growth)

https://abs.twimg.com/emoji/v2/... draggable="false" alt="💎" title="Edelstein" aria-label="Emoji: Edelstein"> Gross margins have stayed consistent at around 40% - 45%

https://abs.twimg.com/emoji/v2/... draggable="false" alt="💰" title="Geldsack" aria-label="Emoji: Geldsack">The company currently has over $1.1B in current assets and $530m in current liabilities

Besides a 1-time write-off of $212m this quarter, all seems to go well for $FTCH

https://abs.twimg.com/emoji/v2/... draggable="false" alt="👥" title="Silhouette von Büsten" aria-label="Emoji: Silhouette von Büsten"> Management team has a strong track record in the fashion business and is driving $FTCH towards a profit

https://abs.twimg.com/emoji/v2/... draggable="false" alt="🔦" title="Elektrische Fackel" aria-label="Emoji: Elektrische Fackel"> Key question is whether they have loyal customers https://abs.twimg.com/emoji/v2/... draggable="false" alt="😇" title="Lächelndes Gesicht mit Heiligenschein" aria-label="Emoji: Lächelndes Gesicht mit Heiligenschein"> and a MOAT https://abs.twimg.com/emoji/v2/... draggable="false" alt="💪" title="Angespannter Bizeps" aria-label="Emoji: Angespannter Bizeps"> in the luxury play

$FTCH enjoyed a COVID related boost as its active consumers reached 2.5m, up from 1.7m a year earlier https://abs.twimg.com/emoji/v2/... draggable="false" alt="🛍" title="Einkaufstaschen" aria-label="Emoji: Einkaufstaschen">

Their loyalty program https://abs.twimg.com/emoji/v2/... draggable="false" alt="🏷" title="Etikett" aria-label="Emoji: Etikett"> has over 2m enrolled customers and app installs https://abs.twimg.com/emoji/v2/... draggable="false" alt="📲" title="Mobiltelefon mit nach rechts zeigendem Pfeil auf der linken Seite" aria-label="Emoji: Mobiltelefon mit nach rechts zeigendem Pfeil auf der linken Seite"> more than DOUBLED YoY

However, Average Order Value decreased from $600 to $493 as new customers may need some more time to spend bigger https://abs.twimg.com/emoji/v2/... draggable="false" alt="💸" title="Geld mit Flügeln" aria-label="Emoji: Geld mit Flügeln"> on the platform

https://abs.twimg.com/emoji/v2/... draggable="false" alt="🔥" title="Feuer" aria-label="Emoji: Feuer"> And now the crunchy part https://abs.twimg.com/emoji/v2/... draggable="false" alt="🔥" title="Feuer" aria-label="Emoji: Feuer">

https://abs.twimg.com/emoji/v2/... draggable="false" alt="💎" title="Edelstein" aria-label="Emoji: Edelstein"> Luxury market has recovered since March and shares of leading luxury groups are trading near ATH

https://abs.twimg.com/emoji/v2/... draggable="false" alt="🛍" title="Einkaufstaschen" aria-label="Emoji: Einkaufstaschen"> 35% of the luxury spending happens in China (McKinsey est.) and $JD invested $397m in $FTCH and they have now merged their Chinese operations

https://abs.twimg.com/emoji/v2/... draggable="false" alt="🔬" title="Mikroskop" aria-label="Emoji: Mikroskop">By having a clear focus on luxury, $FTCH is able to use its data to boost its in-house luxury brands such as Off-White

https://abs.twimg.com/emoji/v2/... draggable="false" alt="⚖️" title="Waage" aria-label="Emoji: Waage"> $FTCH might thus be good play with the rise of upmarket e-commerce

https://abs.twimg.com/emoji/v2/... draggable="false" alt="🪓" title="Axt" aria-label="Emoji: Axt"> Countless recessions have already shown that luxury is here to stay

https://abs.twimg.com/emoji/v2/... draggable="false" alt="🔮" title="Kristallkugel" aria-label="Emoji: Kristallkugel"> And taking advantage of the rise of luxury in China with a player backed by a Chinese giant such as $JD only make sense

Hope you liked this thread!

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Here is the case for $FTCH - would love to hear your take on that! https://abs.twimg.com/emoji/v2/... draggable="false" alt="🗣" title="Silhouette eines sprechenden Kopfes" aria-label="Emoji: Silhouette eines sprechenden Kopfes">

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Sources

✑ https://www.fastcompany.com/company/farfetch

✑">https://www.fastcompany.com/company/f... https://www.ft.com/content/64649eb8-4307-11e9-b168-96a37d002cd3

✑">https://www.ft.com/content/6... Investor presentation

✑ https://www.mckinsey.com/ ">https://www.mckinsey.com/">...