Yoox Agrees To Buy Richemont's Net A Porter In All Share Deal

That appears to be changing, though. The group has posted strong sales growth in recent quarters, highlighting a recovery in demand for top-end Swiss mechanical watches. The broader mix of products and prices offered by its brands, in particular to younger customers, who tend to browse and buy online, has also bolstered results.

Yoox Net-a-Porter owns and operates the internet retailers Net-a-Porter, Mr Porter, the Outnet and Yoox, and operates e-commerce sites for over 30 luxury brands, including Stella McCartney, Dolce & Gabbana and Chloé.

The company reported sales of €2.1 billion last year, up 11 percent from a year earlier, and recently unveiled ambitious plans to double the size of its business by 2020. Its archrival is Farfetch, an online marketplace for 500 independent luxury boutiques and 200 brands that also owns the bricks-and-mortar store Browns in London. Farfetch is rumored to be mulling an initial public offering this year.

Federico Marchetti, the Yoox Net-a-Porter chief executive, has agreed to sell his shares and any he would acquire through the exercise of options in the offer. He owned about 3.9 percent of the company’s total share capital.

Richemont said Yoox Net-a-Porter would continue to operate as a separate business, “ensuring it remains a neutral and highly attractive platform for third-party luxury brands.” Yoox Net-a-Porter’s headquarters would remain in Italy.

“Richemont aims to provide additional resources that further strengthen and accelerate YNAP’s long-term leadership in online luxury,” Mr. Marchetti said in a news release. “This means investing even more in product, technology, logistics, people and marketing.”

With much speculation over the “death of retail,” the steady decline of department stores and the threat of online giants like Amazon, one bright spot in the shopping landscape has been businesses like Yoox Net-a-Porter — high-end, multibrand e-commerce companies that have attained sky-high valuations.

Source : https://www.nytimes.com/2018/01/22/business/dealbook/richemont-yoox-net-a-porter.html

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