Gilt's

Mr. Jassin's doubts center on the worsening fundamentals in Gilt's core business of selling designer goods at a discount.

Gilt's Hefty Valuation Puts New Web Boom to the Test Elizabeth Holmes 2011

About a quarter of the revenue from Jetsetter, Gilt's travel site, come from full-price sales, he said.

Gilt's Hefty Valuation Puts New Web Boom to the Test Elizabeth Holmes 2011

Gilt's value won't hold up if it can't secure, for instance, enough shoes from Stuart Weitzman or handbags from Carlos Falchi.

Gilt's Hefty Valuation Puts New Web Boom to the Test Elizabeth Holmes 2011

A recovering economy is drying up the flow of excess goods that supplied Gilt's inventory during the recession.

Gilt's Hefty Valuation Puts New Web Boom to the Test Elizabeth Holmes 2011

Randall Glein , managing director of the Draper Fisher Jurvetson Growth Fund, said his firm isn't worried about Gilt's lack of profit, saying the company is making the choice of putting its money into expansion—a typical choice for young companies.

Gilt's Hefty Valuation Puts New Web Boom to the Test Elizabeth Holmes 2011

A group of nine investors, including Goldman Sachs Group Inc. and Japan's Softbank Corp., bought into Gilt's latest funding round.

Gilt's Hefty Valuation Puts New Web Boom to the Test Elizabeth Holmes 2011

Associated Press Stylists Seth Howard, left, and Tammy Eckenswiller prepared accessories for a fashion shoot at Gilt's studios in New York last year.

Gilt's New Funding Values Online Retailer at $1 Billion Elizabeth Holmes 2011

Although some of Gilt's businesses are making money, the company as a whole isn't as it invests in expanding into new areas.

Gilt's New Funding Values Online Retailer at $1 Billion Elizabeth Holmes 2011

Peter Foley/Bloomberg News Kevin Ryan, chief executive of Gilt Groupe Nearly half of the new infusion of funds is coming from Japanese media conglomerate Softbank, which also will invest in Gilt's Japanese unit, taking a 50% stake.

Gilt's New Funding Values Online Retailer at $1 Billion Elizabeth Holmes 2011

Gilt Chief Executive Kevin Ryan said the company's valuation, double what it commanded in another capital raising a year ago, is justified by Gilt's ability to sell nonfashion merchandise and full-price products as well as its rapid growth potential.

Gilt's Hefty Valuation Puts New Web Boom to the Test Elizabeth Holmes 2011