Nov 24, 2014
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Richemont may consider sale or IPO of Net-A-Porter

Nov 24, 2014

The Swiss luxury group Richemont may be considering a separation from Net-A-Porter, the online high-end clothing store it bought in 2010. According to information reported by US news agency Bloomberg, citing sources familiar with the matter, the fine jewelry and watches group appears to be considering two options, which it is discussing with banks. 

It may introduce Net-A-Porter onto the stock market with an IPO in 2015, or it may sell the company. No final decision has yet been made, and following a valuation, Richemont may decide to keep the business, according to Bloomberg.

In 2010, the Swiss group completed its acquisition of Net-A-Porter when it increased its share from a third to 93%. At the time, the value of the UK e-retailer, which was founded in 2000 by former fashion journalist Natalie Massenet, was assessed at around 400 million euros (315 million pounds/500 million dollars). 

According to an analyst from Bank Vontobel, quoted by Bloomberg, Net-A-Porter’s sales reached 580 million euros during Richemont’s 2013/2014 fiscal year, and should reach 660 million euros for its 2014/2015 fiscal year. The site, however, is still not profitable, according to the American agency, which recalls that Net-A-Porter has remained without a CEO since last July, following the retirement of CEO Mark Sebba.

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