What: Luxury e-commerce landscape reshapes as Mytheresa buys YNAP, highlighting industry-wide struggles and the need for strategic repositioning.

Why it is important: This consolidation may signal a shift in how luxury brands approach online distribution, potentially impacting their strategies for direct-to-consumer sales and partnerships with multi-brand retailers.

Mytheresa has signed an equity deal to acquire Yoox Net-a-Porter (YNAP) from Richemont, aiming to create a leading multi-brand digital luxury group. The transaction involves Richemont selling YNAP with a EUR 555 million cash position and no debt, while taking a 33% stake in Mytheresa. This move comes as the luxury e-commerce sector faces significant challenges, with many players struggling to maintain profitability.

Mytheresa plans to discontinue YNAP's white label services and integrate its e-commerce brands into its technology platform. The deal is expected to close in the first half of 2025, subject to regulatory approvals. This acquisition marks the end of Richemont's efforts to offload YNAP, which it had been trying to sell since 2022.

The luxury e-commerce landscape has been under pressure due to market slowdowns, high customer acquisition costs, and major brands prioritizing direct-to-consumer channels. This consolidation reflects the ongoing need for e-commerce players to adapt their strategies in an evolving market where traditional retail fundamentals and targeted customer experiences are increasingly important for success.

Mytheresa acquires Yoox Net-a-Porter from Richemont in equity deal