Saks Fifth Avenue’s eCommerce business is preparing to file for an initial public offering and eyeing a $6 billion valuation — three times higher than its market value as of Q1 2021.
The company’s online business, which was spun off as a separate entity by parent company HBC, is said to be interviewing potential underwriters this week. The IPO could take place in the first half of 2022, WSJ reported.
HBC’s decision came on the heels of a $500 million investment from Insight Partners. The investment gave the venture capital firm a minority stake in Saks.com and valued the business at $2 billion.
The two companies today work in conjunction to deliver a seamless buying experience in-store and online. Saks leads marketing and merchandising across both businesses, whereas the brick and mortar stores fulfill the physical functions of Saks, such as buy online, pick up in-store, exchanges, returns and alterations.
“With this move, we are redefining the luxury shopping ecosystem,” said HBC CEO Richard Baker on the company’s decision to spin off its online business earlier this year. “Luxury eCommerce is poised for exponential growth, and as a standalone digital company with an existing strong position in luxury, Saks is primed to win significant market share,” he added, noting SFA’s 100-year-old brand status and legacy of reinventing itself.