You're watching...
Gilt Groupe CEO Kevin Ryan on the outlook for luxury sales and the timing of a possible IPO.
Also in this playlist...
Auto-advance: ON
Auto-advance
This transcript is automatically generated
Consumer sentiment -- that its highest level since June that's -- the rising optimism.
May be the reason why -- next guest is looking to IPO increase his emanate activity in continue to hire Kevin Ryan is a CEO and co-founder of gilt -- we'll talk about the possibility of the gilt Groupe -- December 1 of all.
You kind of are immune to economic downturn searching you're just dealing with a 1% right.
Well we're hedged because a lot of what we do -- is that sold at a discount.
So when the economy's not doing as well we actually get more merchandise in many ways on economic downturn is actually good for you -- it's.
Slightly helpful is slightly up -- lose their job and they have no money that it doesn't help at all but in general -- slightly helpful for us but we are seeing.
You know at the top 1% people are still spending.
So how important to you is consumer sentiment it -- it must be a good thing for you when people feel like buying more actually it's very good we're seeing very good results.
I think what you're seeing out in the market right now the top 1%.
Luxury is doing incredibly well.
What the rest of the market is a little bit soft you're seeing the department stores on sale right now.
-- specialty stores doing okay.
Where -- -- -- more merchandise come to us in the last two weeks than we've seen in the last six months OK just to remind folks you deal with a -- gilt does not mean like I feel guilty -- needs like the -- the -- range.
With GIL getting so.
You -- you're dealing with with what kind of merchandise merchandise that that retails African -- weren't able to move and -- they sell it to you yes.
We're seeing a lot its high end merchandise and it's satisfaction clothing were selling a lot of high and travel.
Restaurants gourmet food.
So home products so it's across the board why is it easier for you to sell those items than the folks who couldn't that sell it to you so we just have more distribution we seem to fundamental things one more and more people are shopping online.
That's that's just at fundamental trends continue for the next ten years and secondly we're reaching millions of millions of people we're showing that item are showing that suit money good looking model.
You -- he presented beautifully photographed.
And so lots of people will go ahead and buy that sold can't the retailers themselves get -- together to do that to market at the way you successfully marketed.
I think -- one trend of the last fifteen years which is if you happen offline business whether it's a newspaper whether it's a store when it's music label.
It's very hard for you to be a winner on line it's OK time after time.
If you're focused on line UN -- being the winner and so far I think we're we're doing well there is an expertise in you can see the difference consumer okay.
IPO IPOs or when people make the real big money most folks in your position don't like to talk about but -- Suggested even a possible timeline.
Well horror -- yapping and I -- I said two things one is that right now we're not working on IQ at all.
Back again timing we would look at that at some point and it's somewhere between fourth quarter next year and fourth quarter 2013.
Is probably the zone that we would look at why those times.
Well -- I want to wait that is mature enough for plenty big enough to go public -- -- wanna make sure that you feel like your earnings are predictable.
That you're systems arm place and -- to -- public in 1988.
Very different market very different time I think you wanna be bigger and more solid today your gross sales or what about 500 million so let our year ending last June gross sales were about five -- -- what are your projections for growth -- giving public projections yet we're getting too close to us.
Zone where we can't get those out anymore that it's it's growing we're seeing very good growth across how to the folks out there who think you got a great product and a potential terrific expansive.
Market out there how -- they play into the IPO I can they how -- they take advantage of that if at all well they can't yet until we would go public.
But dealt with the issue right now is just -- a lot of clothes on -- And I would really help us get closer that I PO by the way it's it's say an invitation only sort of website right if you have over three million member yes we have bit more than that.
But people and -- on the web -- now and when they go there they can get an invitation to sign again are not surprised to obviously pleasantly surprised by how fast your company's growth yeah I am I mean I am.
We used every -- -- the north started many companies we start a company think it's going to work.
And the other hand.
One half years ago I was sitting there with a piece of Paper and today we have almost 900 employees.
And you know I global business so it's it's there's nothing more fun than launching a successful business we need serial entrepreneurs like this guy Kevin Ryan great to see -- -- thank you frank.
