A potential IPO has been on the horizon for Gilt Groupe for some time now, and Bloomberg is reporting that the flash sale site has now gotten the ball rolling on going public. According to the news outlet’s sources, Gilt has chosen Goldman Sachs to manage its IPO, although a date has not yet been set.
A Gilt rep declined to comment when we reached out late Monday night.
For Gilt, preparing for an IPO meant going back to basics and nailing what made it popular in the first place: flash sales. When newly appointed CEO Michelle Peluso joined the company in July, she told Bloomberg that, “There’s still this myth out there that flash is not exciting. Flash is our core. We did take our eye off the core last year, but we’ve refocused and the performance of Gilt has improved quite a lot since then.”
Gilt wouldn’t be the first flash sales site to go public: Zulily, a daily deals site for moms, had a successful IPO in November, with shares popping 82 percent above its IPO price. As Bloomberg points out, Zulily is now the third biggest U.S. e-commerce company after Amazon and eBay, presently valued at $4.76 billion.
That said, Zulily and Gilt are very different businesses. While Gilt is all about nabbing the luxury goods you want, Zulily is a go-to for the constant, necessary expenses of raising a child. So, really, Gilt would very much be testing the waters for flash sales of the high fashion variety.
We’ll update as we get more information on the move.