The fast-growing e-commerce business of luxury retailer Saks Fifth Avenue is aiming to go public soon at a valuation roughly triple what it was pegged at earlier this year, in a sign of the boom times for online department-store sales.
Saks is interviewing potential underwriters this week for an initial public offering that could take place in the first half of 2022 and targets a valuation of around $6 billion, people familiar with the matter said. It was last valued at $2 billion in March.
Meeting with bankers is typically one of the first steps toward a listing, though there are no guarantees Saks will move forward with one or receive such a valuation. Market conditions and other unpredictable factors heavily influence IPO plans.
An IPO would be the second phase of a deal struck earlier this year that separated the e-commerce business from Saks’ slower-growing bricks-and-mortar retail operations. The move, meant to help fuel the digital unit’s growth, prompted an activist investor to call for Macy’s Inc.
to do the same last week.
Saks’s parent, HBC, was taken private in early 2020.
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