Richemont has confirmed the sale of its Yoox Net-a-Porter division to MyTheresa, a transaction poised to reshape the digital luxury space.
- MyTheresa will acquire full ownership of YNAP, with the deal scheduled to finalise in early 2025.
- The acquisition includes a cash position of £463m and a £83m revolving credit facility provided by Richemont.
- MyTheresa aims to integrate YNAP into a singular group with distinct storefronts for better efficiency.
- Richemont’s divestment of YNAP, once valued at €5.3bn, comes amidst a €3.4bn asset write-down.
Luxury conglomerate Richemont has reached an agreement to sell its Yoox Net-a-Porter (YNAP) business to the German e-commerce platform, MyTheresa. This strategic move was confirmed on Monday and involves Richemont exchanging its full ownership for a 33% stake in MyTheresa.
MyTheresa will assume complete control of YNAP, with the finalisation of this acquisition anticipated within the first half of 2025. As part of the deal, Richemont will support the transition by leaving YNAP with a strong cash position of £463 million. Additionally, a revolving credit facility of £83 million has been instituted to aid YNAP’s financial requirements.
Upon the acquisition’s completion, MyTheresa plans to unite its new acquisition into one extensive group, maintaining three individual storefronts: MyTheresa, Net-a-Porter, and Mr Porter. This restructuring aims to simplify the operational model, which is expected to enhance growth and profitability. The off-price divisions, Yoox and The Outnet, are set to be separated to optimise operational efficiency and drive profits.
Michael Kliger, CEO of MyTheresa, expressed his excitement, stating, “With this transaction, MyTheresa aims to create a pre-eminent, multi-brand, digital, luxury group worldwide.” This highlights the ambition to curate luxury experiences while maintaining robust customer services across the integrated platforms.
The sale reflects Richemont’s resolution to find a suitable new home for YNAP, after a previous agreement with Farfetch collapsed. YNAP, purchased by Richemont in 2018 for €5.3 billion, experienced a significant devaluation, leading to a €3.4 billion write-down. This acquisition by MyTheresa marks a pivotal shift as it navigates a turbulent luxury market.
MyTheresa has shown remarkable resilience in the luxury e-commerce segment, reporting a 9.8% sales increase last year. Its adjusted earnings saw a notable rise, positioning it as a strong player in a fluctuating market landscape.
The acquisition underscores a transformative period for luxury e-commerce, blending Richemont’s legacy with MyTheresa’s innovative vision.
