In a significant move for the luxury e-commerce landscape, Mytheresa has officially signed an equity deal to acquire Yoox Net-a-Porter (YNAP) from Richemont. The transaction entails Richemont selling YNAP to Mytheresa for €555 million, with the added distinction of having no financial debt involved in the agreement. Richemont will also secure a 33 percent stake in Mytheresa as part of the deal.
Mytheresa’s CEO, Michael Kliger, expressed a clear vision for the future after this acquisition. In a statement, he mentioned the goal of establishing a premier, multi-brand, digital luxury group on a global scale. This acquisition demonstrates Mytheresa’s ambition to lead the luxury e-retail segment through strategic expansion and technological integration. The plan involves a concrete strategy: separating YNAP’s off-price division, terminating its white label services, and aligning YNAP’s various e-commerce brands with Mytheresa’s technology platform.
While this acquisition ushers in a new chapter, it also highlights the challenges that Richemont faced with YNAP. The deal signifies the conclusion of a lengthy effort by Richemont to divest from a brand that has long struggled to maintain profitability. In fact, Richemont began classifying YNAP as a “discontinued operation” starting in 2022, when they entered a previous agreement to sell a near-majority stake to Farfetch.
Interestingly, this transaction is occurring amidst a broader trend of consolidation within the luxury e-commerce sector. Industry players are grappling with multiple pressures: economic slowdowns, escalating customer acquisition costs, and a notable shift towards direct-to-consumer sales channels. The luxury market is seeing a significant shake-up, underscored by the fact that companies like Farfetch were recently rescued from near bankruptcy by external investments, while MatchesFashion faced a turbulent fate after being acquired by Frasers Group.
As the luxury e-commerce landscape navigates these transitions, Mytheresa’s acquisition of YNAP could prove pivotal. It is anticipated that the deal will close in the first half of 2025, pending regulatory approvals. Notably, this agreement does not require shareholder approval, which could streamline the transition process.
Richemont expects the transaction to result in a considerable writedown—reportedly around €1.3 billion. This financial burden illustrates the depth of the struggles associated with YNAP and marks a significant shift in Richemont’s focus within the luxury sector. The group is now positioned to enhance its portfolio and concentrate on brands that are better aligned with current market demands.
The implications of this deal resonate far beyond immediate financial metrics. For Mytheresa, acquiring YNAP is not just about enlarging market share, it’s also an opportunity to capitalize on YNAP’s established customer base and renowned luxury brands. By integrating YNAP’s technology with its own, Mytheresa can enhance user experience, streamline operations, and ultimately improve conversion rates.
Moreover, as consumer preferences evolve, especially with an increasing inclination towards sustainable and ethical shopping practices, the combined entity will have the potential to leverage innovative offerings to attract discerning customers. This alignment could redefine the luxury shopping experience, blending technology, personalized service, and an expansive range of products.
As we move into a future that increasingly favors agile and technologically adept entities, Mytheresa’s strategic acquisition could serve as a blueprint for luxury e-commerce. Companies that can adapt and innovate in response to market changes are better positioned for success in this competitive field.
Stay connected with BoF for ongoing updates as this story evolves. The luxury landscape is undoubtedly in a state of transformation, and keeping an eye on Mytheresa’s latest moves will be crucial for stakeholders and observers alike.
