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Richemont Lends A Helping Hand For Mytheresa To Acquire Yoox Net-A-Porter
MYTEMYTHERESA(MYTE) Forbes·2024-10-08 14:33

Core Viewpoint - Mytheresa has acquired Yoox Net-A-Porter (YNAP) from Richemont, aiming to create a leading multi-brand digital luxury group while enhancing its market position and customer reach [1][3][5]. Financial Overview - Mytheresa reported a 10% increase in annual revenues for fiscal year 2024, with a notable 14% growth in the second half [2]. - The acquisition involves Mytheresa issuing 33% of its fully diluted share capital to Richemont and taking on YNAP's existing cash balances of 604million(€555million)withoutanyfinancialdebt[3].−Richemontanticipateswritingoffapproximately604 million (€555 million) without any financial debt [3]. - Richemont anticipates writing off approximately 1.4 billion (€1.3 billion) in YNAP net assets upon the deal's closure [4]. Market Position and Strategy - The acquisition will more than double Mytheresa's size, adding approximately 2.3billioninYNAP′sgrossmerchandisevalue,whichincludes€1.2billionfromNet−A−PorterandMrPorter,and€0.9billionfromYooxandOutnet[8].−Mytheresawillgainaccessto1.4millionluxurycustomersfromNet−A−PorterandMrPorter,alongwith2.2millioncustomersfromYooxandOutnet,significantlyexpandingitsdemographicreach[9].−Thecombinedcompanieswilloperatedistinctstorefrontswhilesharingbackendoperationstocreatesynergiesandefficiencies[5][11].CompetitiveLandscape−Mytheresa′saverageordervalue(AOV)is2.3 billion in YNAP's gross merchandise value, which includes €1.2 billion from Net-A-Porter and Mr Porter, and €0.9 billion from Yoox and Outnet [8]. - Mytheresa will gain access to 1.4 million luxury customers from Net-A-Porter and Mr Porter, along with 2.2 million customers from Yoox and Outnet, significantly expanding its demographic reach [9]. - The combined companies will operate distinct storefronts while sharing backend operations to create synergies and efficiencies [5][11]. Competitive Landscape - Mytheresa's average order value (AOV) is 775, compared to Net-A-Porter's 735andYooxandOutnet′s735 and Yoox and Outnet's 250, indicating a strong positioning in the luxury segment [8]. - The competitive landscape shows that Farfetch's annual traffic is nearly double that of Mytheresa and Net-A-Porter combined, highlighting the need for Mytheresa to enhance its market presence [10]. Future Growth Potential - The digital personal luxury market is projected to grow from 80billionin2023to80 billion in 2023 to 200 billion by 2030, presenting significant growth opportunities for Mytheresa [15]. - Mytheresa aims to leverage its strong relationships with over 200 luxury brands to elevate its status in the market post-acquisition [13]. Integration Challenges - Integrating the off-price segment of YNAP may pose challenges, as Yoox and Outnet have struggled under Richemont's ownership [14]. - Successful integration will depend on how quickly Mytheresa can merge YNAP's IT systems and distribution centers, which is critical for operational efficiency [17].