LuxExperience to sell THE OUTNET assets to The O Group for $30 million

MUNICH - LuxExperience B.V. (NYSE:LUXE) has entered into a binding agreement to sell the assets powering THE OUTNET luxury off-price platform to The O Group LLC for $30 million, according to a press release statement issued Friday. The company, currently trading at $9.39 and with a market capitalization of $1.28 billion, is considered slightly undervalued according to InvestingPro Fair Value estimates.

The transaction includes the transfer of brand rights, customer data, inventory, the US distribution center, and required workforce in both the US and UK. The final purchase price is subject to adjustment based on inventory levels at closing.

THE OUTNET, founded in London in 2009, offers past-season luxury fashion at discounted prices and generated net sales of €260 million in fiscal year 2025. The platform was recently acquired by LuxExperience as part of the former YOOX NET-A-PORTER business.

Shareholders of The O Group include Joseph Edery and Timeless Group of Companies CEO Ritesh Punjabi, described as experts in luxury fashion.

"We are very pleased that we have found the optimal solution both for THE OUTNET and for our Group," said Michael Kliger, Chief Executive Officer of LuxExperience. "The transaction will allow THE OUTNET to achieve its full potential under a renewed independent, stand-alone business model."

The divestment aligns with LuxExperience’s transformation plan announced in May 2025, which aims to simplify its operating model. The company intends to focus its off-price resources on its YOOX business while accelerating infrastructure development for NET-A-PORTER and MR PORTER.

Following the transaction, LuxExperience will maintain a commercial relationship with THE OUTNET and provide certain operational and IT services at cost level for a period after closing.

The deal is expected to close in the first quarter of 2026, subject to customary regulatory approvals and payment conditions.

In other recent news, LuxExperience BV DRC reported impressive financial results for the fourth quarter of fiscal year 2025. The company achieved a remarkable earnings per share (EPS) of 4.67, which was significantly above the analyst forecast of 0.04. This resulted in an extraordinary earnings surprise of 11,575%. Additionally, LuxExperience’s revenue reached 587.8 million euros, surpassing the anticipated 340.21 million euros by 72.78%. These results reflect a strong performance from the company, marking a positive development for investors. The earnings announcement has attracted attention from various analyst firms, though specific upgrades or downgrades were not mentioned in the recent reports. These developments are significant as they provide insights into LuxExperience’s financial health and operational success.

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