Cartier owner Richemont is selling its luxury eCommerce platform Yoox Net-a-Porter to online retailer Mytheresa.
The $608 million deal, announced Monday (Oct. 7), ends a monthslong search by Richemont for a new owner for Yoox Net-a-Porter (YNAP).
“Mytheresa and YNAP have each earned a strong reputation in the luxury industry for their pioneering roles in innovation, authoritative editorial voice and curation, as well as high-quality customer service,” Richemont said in a news release.
“Together, the different storefronts cover a broad spectrum of the luxury market with distinct propositions in terms of brand portfolio, customer and geographical focus, while sharing the strategic positioning towards high-end customers.”
According to the release, Munich-based Mytheresa plans to integrate YNAP’s luxury division into its company to form “one group with three distinct storefronts,” Mytheresa, Net-A-Porter and Mr. Porter.
“The three brands will share a large part of their infrastructure, creating synergies and efficiencies while maintaining their different brand identities,” Mytheresa CEO Michael Kliger said. “The off-price business will benefit from the separation from luxury and a much simpler operating model driving growth and profitability.”
Meanwhile, the new owner will separate the off-price division — made up of YOOX and The Outnet — from the luxury division, and discontinue YNAP’s white label division, “once the Richemont Maisons’ online stores powered by YNAP migrate to their own chosen platforms.”
Richemont had initially planned to sell YNAP to eCommerce company Farfetch, but that deal fell apart late last year when Farfetch was acquired by Korea’s Coupang.
The deal comes on the heels of a successful fourth quarter and fiscal year for Mytheresa, as PYMNTS wrote last month.
The company saw improvements in revenue and profitability, projecting ongoing growth despite macroeconomic uncertainties. Net sales grew 14% in the second half of the fiscal year and 10% in the fourth quarter, with growth in the U.S. climbing 25% year over year.
“We clearly see ourselves as a winner in the consolidated luxury space,” Klinger told analysts and investors during the company’s fourth-quarter and full-year earnings call
“After a difficult period last autumn, we’re back on track for strong growth, and the U.S. continues to be a strong driver for our growth. We’re building a community for luxury enthusiasts and building it with digital experiences is paying off.”
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