Merger for luxury web shops Yoox and Net-a-Porter

Merger for luxury web shops Yoox and Net-a-Porter

Luxury web shops Yoox and Net-a-Porter are to merge into a new online retailer, worth 1.2 billion euro in turnover.

From 350 million to 1.5 billion euro

Founded in 2000 by Natalie Massenet in London, Net-a-Porter was subsequently sold to Richemont for 350 million euro. The Swiss luxury concern poured a lot of money into the web shop, quadrupling its sales over the past few years.

 

CFO Gary Saage had to divulge some weaknesses though: "Ever since we bought Net-a-Porter in 2010, the competition has only grown and that has resulted in lower-than-originally-expected operational margins."

 

Yoox and Net-a-Porter will now merge into Yoox Net-a-Porter Group, which will start its operations in September under Richemont's control. The Swiss company will get 50 % of shares, but only a 25 % say "to guarantee the independence of the new company". That means that Yoox will have the actual operational control within the new group.

 

Net-a-Porter is still onerous

Yoox was founded 15 years ago by Federico Marchetti and has French Kering (including Gucci and Bottega Veneta) as its most important client. It managed a 13.8 million euro net profit on a 524 million euro turnover. Net-a-Porter on the other hand, managed a 770 million euro turnover in its latest fiscal year (2013-2014), with a 20 million euro net loss in the end. Nevertheless, that is an improvement over the previous year.

 

Several days ago, a rumour surfaced that Amazon wished to purchase Net-a-Porter, but "a deal with Amazon was never in the cards", according to sources in Milan.

Questions or comments? Please feel free to contact the editors


Alibaba invests billions in physical retail

28/08/2017

Over the past two years, Chinese eCommerce giant Alibaba has spent nearly seven billion euro in physical retail. Its Hema Xiansheng chain already has thirteen supermarkets and it acquired luxury department store Intime from the government in January.

Alibaba exceeds expectations

17/08/2017

Chinese Alibaba has trumped analysts’ turnover and profit expectations with its first quarter results. Its profit even doubled compared to the year before.

Aldi will home deliver in the United States

16/08/2017

German discounter Aldi is starting one-hour deliveries for online orders in the United States, using startup Instacart. Amazon’s reaction was swift: it will test lockers in which custumers can collect items two minutes after ordering them.

Yoox-Net-a-Porter thrives thanks to mobile surge

03/08/2017

Online retailer Yoox-Net-a-Porter has managed to beat analysts’ expectations in the past fiscal year, thanks to a surge in mobile sales. For the first time ever, these sales contributed more than half of the retailer’s total turnover.

Lidl constructs new distribution center in Venlo

01/08/2017

Lidl will open a new distribution center in Venlo, which will cater its web shop’s customer base. The distribution center is not a Lidl Netherlands project, but apparently an international project.

Amazon places own pick-up lockers at consumers' homes

31/07/2017

Amazon announced The Hub, a system of pick-up lockers that can be placed everywhere. They come in different sizes and can be placed both inside or outside of buildings.

Back to top