Richemont, Doubling Down on Online Luxury, May Buy Yoox Net-a-Porter
- 6 years ago
Richemont, Doubling Down on Online Luxury, May Buy Yoox Net-a-Porter
Compagnie Financière Richemont, the Swiss company which owns the Cartier, IWC
and Montblanc brands, said on Monday it had offered to take over the fashion e-commerce company Yoox Net-a-Porter for 2.8 billion euros, or about $3.4 billion.
The authors of that report estimated that online sales of personal luxury goods would
make up 25 percent of the market by 2025, compared with about 9 percent now.
The company reported sales of €2.1 billion last year, up 11 percent compared to the same period a year ago,
and recently unveiled ambitious plans to double the size of its business by 2020.
Richemont said that it had offered to pay €38 a share to buy the Yoox Net-a-Porter stock
that it does not already own, representing a 25.6 percent premium to the company’s closing price on Friday.
Wealthy consumers are becoming ever more comfortable with spending large sums of money online, with internet
luxury sales jumping by 24 percent last year, according to a recent study by the consulting firm Bain & Co.
“With this new step, we intend to strengthen Richemont’s presence
and focus on the digital channel, which is becoming critically important in meeting luxury consumers’ needs,” Johann Rupert, the Richemont chairman, said in a news release.
Richemont said that 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.
Compagnie Financière Richemont, the Swiss company which owns the Cartier, IWC
and Montblanc brands, said on Monday it had offered to take over the fashion e-commerce company Yoox Net-a-Porter for 2.8 billion euros, or about $3.4 billion.
The authors of that report estimated that online sales of personal luxury goods would
make up 25 percent of the market by 2025, compared with about 9 percent now.
The company reported sales of €2.1 billion last year, up 11 percent compared to the same period a year ago,
and recently unveiled ambitious plans to double the size of its business by 2020.
Richemont said that it had offered to pay €38 a share to buy the Yoox Net-a-Porter stock
that it does not already own, representing a 25.6 percent premium to the company’s closing price on Friday.
Wealthy consumers are becoming ever more comfortable with spending large sums of money online, with internet
luxury sales jumping by 24 percent last year, according to a recent study by the consulting firm Bain & Co.
“With this new step, we intend to strengthen Richemont’s presence
and focus on the digital channel, which is becoming critically important in meeting luxury consumers’ needs,” Johann Rupert, the Richemont chairman, said in a news release.
Richemont said that 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.