Richemont, the Swiss luxury group known for brands like Cartier, Van Cleef & Arpels, and Montblanc, has finalized a deal to sell its online fashion business Yoox Net-A-Porter (YNAP) to the German luxury e-commerce platform Mytheresa. This transaction follows a previously failed sale attempt involving Farfetch, which fell through due to financial difficulties on the buyer’s end. The new agreement marks a strategic shift as Richemont moves away from managing online retail operations directly.
Under the terms of the deal, Richemont will transfer YNAP, including a cash position of €555 million, in exchange for a 33% equity stake in Mytheresa. This approach not only relieves Richemont from managing a loss-making business but also allows the luxury conglomerate to maintain some involvement in the online market through its minority stake. Additionally, Richemont will provide a six-year €100 million credit facility to support YNAP’s transition and future operations.
This restructuring divides YNAP’s operations: Mytheresa will integrate the luxury segment, including platforms like Net-A-Porter and Mr. Porter, into its operations. Meanwhile, the off-price divisions Yoox and The Outnet will be separated to streamline operations and boost profitability. The companies also plan to discontinue YNAP’s white-label services once the transition of partner brands to new platforms is complete.
This move comes amid broader challenges in the luxury sector, with demand slowing in key markets like China and inflation affecting spending in the West. Richemont’s pivot to focus on its core luxury brands and Mytheresa’s recent financial performance, which showed growth in U.S. sales, make the deal strategically beneficial for both parties. The transaction is expected to close by the first half of 2025, subject to regulatory approval.
This realignment aims to position Mytheresa and YNAP for future growth while allowing Richemont to reduce financial risks and refocus on its primary luxury offerings. For Mytheresa, the acquisition strengthens its market presence and expands its luxury portfolio significantly, positioning it as a leader in online luxury retail.
Richemont, the Swiss luxury group known for brands like Cartier, Van Cleef & Arpels, and Montblanc, has finalized a deal to sell its online fashion business Yoox Net-A-Porter (YNAP) to the German luxury e-commerce platform Mytheresa. This transaction follows a previously failed sale attempt involving Farfetch, which fell through due to financial difficulties on the buyer’s end. The new agreement marks a strategic shift as Richemont moves away from managing online retail operations directly.
Under the terms of the deal, Richemont will transfer YNAP, including a cash position of €555 million, in exchange for a 33% equity stake in Mytheresa. This approach not only relieves Richemont from managing a loss-making business but also allows the luxury conglomerate to maintain some involvement in the online market through its minority stake. Additionally, Richemont will provide a six-year €100 million credit facility to support YNAP’s transition and future operations.
This restructuring divides YNAP’s operations: Mytheresa will integrate the luxury segment, including platforms like Net-A-Porter and Mr. Porter, into its operations. Meanwhile, the off-price divisions Yoox and The Outnet will be separated to streamline operations and boost profitability. The companies also plan to discontinue YNAP’s white-label services once the transition of partner brands to new platforms is complete.
This move comes amid broader challenges in the luxury sector, with demand slowing in key markets like China and inflation affecting spending in the West. Richemont’s pivot to focus on its core luxury brands and Mytheresa’s recent financial performance, which showed growth in U.S. sales, make the deal strategically beneficial for both parties. The transaction is expected to close by the first half of 2025, subject to regulatory approval.
This realignment aims to position Mytheresa and YNAP for future growth while allowing Richemont to reduce financial risks and refocus on its primary luxury offerings. For Mytheresa, the acquisition strengthens its market presence and expands its luxury portfolio significantly, positioning it as a leader in online luxury retail.