Luxury E-Commerce: Crash or Correction?

Just a year ago, luxury dotcom valuations were flying high. Farfetch was trading on a forward sales multiple approaching 12.8x (a 266 percent premium to dotcom benchmark Amazon); venture capital money was flooding into the sector; and the demand for luxury dotcom IPOs remained unsatiated, as evidenced by the initial stock market performance of MyTheresa and The RealReal. But towards the end of 2021, the luxury dotcom pink cloud turned into a…