Mytheresa set to acquire YNAP, eyes luxury market expansion

MUNICH & GENEVA - Mytheresa (NYSE:MYTE) has obtained the final regulatory approval needed to proceed with its acquisition of YOOX NET-A-PORTER (YNAP) from luxury goods group Richemont (SWX:CFR). The European Commission's unconditional merger control clearance, announced today, allows Mytheresa to close the transaction on April 23, 2025.

The acquisition, which was initially agreed upon on October 7, 2024, is set to create a leading global multi-brand digital luxury group. The new entity, LuxExperience B.V., will encompass Mytheresa, NET-A-PORTER, MR PORTER, YOOX, and THE OUTNET, offering a curated selection of prestigious brands to luxury customers worldwide. Richemont's stock has seen a 19.8% decline year-to-date, though analysts maintain a positive outlook with multiple upward earnings revisions for the upcoming period.

Mytheresa's CEO, Michael Kliger, expressed enthusiasm for the merger, highlighting the creation of a leading digital luxury platform with multiple distinguished storefronts. He anticipates significant synergies from a joint back-of-house platform, enhancing the value proposition for luxury shoppers and brands.

The financial details of the acquisition reveal ambitious targets. Mytheresa's CFO, Martin Beer, outlined the aim for LuxExperience to reach 4 billion Euros in Gross Merchandise Value (GMV) per annum with an Adjusted EBITDA margin of over 8%. Despite initial EBITDA margin dilution, Mytheresa expects to return YNAP to profitability within 24 to 36 months, supported by a net cash position of 555 million Euros at closing. According to InvestingPro data, Richemont has demonstrated strong financial management with 32 consecutive years of dividend increases and maintains a healthy dividend yield of 3.56%.

Richemont will transfer YNAP to Mytheresa debt-free and with a 555 million Euro cash position. Additionally, Richemont will provide a 6-year 100 million Euro revolving credit facility to YNAP. As part of the deal, Richemont will receive new shares in Mytheresa, amounting to a 33% stake post-transaction, and Richemont's CFO, Burkhart Grund, will join Mytheresa's Supervisory Board.

The operational model post-acquisition will see Mytheresa, NET-A-PORTER, and MR PORTER maintain distinct brand identities while sharing central resources. YOOX and THE OUTNET will form a separate off-price division.

The completion of this transaction marks a significant step for Mytheresa as it expands its presence in the luxury digital retail space. Further announcements and details on integration plans are expected following the closing of the transaction. For a comprehensive analysis of Richemont's financial position and future prospects, including exclusive ProTips and detailed valuation metrics, visit InvestingPro, where you'll find our in-depth Pro Research Report covering what really matters for informed investment decisions.

This news article is based on a press release statement.

In other recent news, Cullen/Frost Bankers reported impressive fourth-quarter earnings for 2024, with earnings per share (EPS) reaching $2.36, surpassing the forecast of $2.16. The company also reported revenue of $556.55 million, exceeding the anticipated $530.92 million. Keefe, Bruyette & Woods responded to these results by raising their price target for Cullen/Frost to $148, maintaining a Market Perform rating. The firm expressed optimism about Cullen/Frost's performance in a "Higher For Longer" interest rate environment and increased their 2025 earnings estimates by 7%, projecting an EPS of $8.90. Meanwhile, DA Davidson downgraded Cullen/Frost from Buy to Neutral but raised their price target to $143, citing limited growth potential at the current premium valuation. Despite the downgrade, DA Davidson acknowledged the bank's strong market position and included it in their Best-of-Breed Bison list. Cullen/Frost's strategic expansions and robust market share gains continue to drive its strong financial performance, as highlighted in the recent earnings call.

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