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It’s been an eventful year for luxury e-commerce. Farfetch was sold for pennies on the dollar to Coupang in April of this year after running into profitability issues. Matches Fashion suffered a similar fate, being purchased by Frasers Group in late 2023 only to be shuttered completely in March. And Richemont’s Yoox-Net-a-Porter has remained a notorious money loser for its parent company.
The latest news on this front is that Mytheresa, one of the few luxury e-commerce platforms that has fared well in the past few years, has acquired YNAP from Richemont in a deal that also sees Richemont taking a 33% stake in Mytheresa.
On paper, it’s a win-win scenario for both companies. The deal, once it closes next year, will instantly turn Mytheresa into a $3 billion company, significantly increasing Mytheresa’s size. Mytheresa will also be taking on none of YNAP’s debt and inheriting over $600 million in cash from YNAP. Richemont, on the other hand, can finally write off YNAP, which has been a drag on its earnings for several years now.
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