Yoox Net-a-Porter Is Sold to Mytheresa by Richemont: What the Acquisition Means for the Online Luxury Brands

Yoox Net-a-Porter Acquisition: Key Insights

• Richemont Sold Yoox Net-a-Porter to Mytheresa: Richemont has been in talks for some time to sell the struggling eCommerce division it acquired in the early 2010s. After a deal with Farfetch fell through at the end of last year, a clearer path forward has been mapped out by Mytheresa, in which Richemont will continue to have a stake.

• Separating Luxury and Discount Divisions: As Net-a-Porter and Mr Porter continue to generate consistent sales, while luxury discount platforms Yoox and The Outnet post higher losses, the new owner will more clearly separate the two categories to appeal to a broader audience.

Luxury conglomerate Richemont is selling Yoox Net-a-Porter (YNAP) to Mytheresa. The struggling digital business has been weighing heavily on Richemont’s portfolio and has now found a new owner to restructure operations. The deal was immediately well received by investors, with Mytheresa’s share price rising by 7.75% and Richemont’s by 1.1%. 

Richemont is selling YNAP with a cash position of €555 million (US$609 million) and no financial debt, for Richemont in turn to acquire a 33% stake in Mytheresa. Richemont also has the right to nominate one director and one observer to the supervisory board upon closing of the transaction. Richemont has been looking for a buyer for YNAP for some time. The acquisition was uncertain for a while, especially after negotiations with luxury marketplace Farfetch fell through when Farfetch was acquired by Coupang at the end of 2023.

Yoox Net-a-Porter Restructure After Fluctuating Sales

The gold rush for luxury eCommerce platforms in the early 2010s has passed, and now growing liabilities and fluctuating demand in an oversaturated market are weighing down on investors. 

Net-a-Porter and Mr Porter are the Group’s two luxury online stores, while Yoox and The Outnet sell luxury at more discounted prices. A look at the YNAP Group's revenues shows that the discount segments have generated the lowest revenues, while Net-a-Porter and Mr. Porter have driven sales. But Yoox, in particular, hasn't always been second-tier: Since 2020, revenues have been falling.

While the conglomerate itself had fluctuating, but more or less stable revenues across all domains, a common drop occurred in 2020: The pandemic presumably shifted consumer needs away from luxury items, which are less of a necessity in the face of job losses and supply chain disruptions. Luxury tends to be a robust category due to consumer affluence, but a luxury platform that reaches broader consumer segments by offering products at lower prices is also more susceptible to shocks.   

Mytheresa has announced the separation of the luxury and discount segments as a new path forward. To provide a clearer structure, Net-a-Porter and Mr Porter will remain with the affluent consumer base, while Yoox and The Outnet will cater to a broader audience, generating more consistent revenues. Richemont's continued involvement in the venture signals its confidence in this approach.

Sources: Excitingcommerce: 1 2 – Financial Times – Vogue