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A few months after its formation, LuxExperience is already streamlining its operations by selling The Outnet.<\/p>\n
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In a press release published on October 31, the new global luxury e-commerce giant announced that it had signed an agreement to sell the assets of its discount luxury platform to The O Group LLC. LuxExperience was created at the beginning of the year when Mytheresa<\/b>‘s parent company, MYT Netherlands Parent, acquired YNAP (Yoox Net-A-Porter)<\/b> from the Swiss group Richemont<\/b> for \u20ac555 million.<\/p>\n
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The transaction is expected to close in the first quarter of 2026, subject to customary regulatory approvals and payment conditions. It will include \u201cthe relevant trademark rights, customer data, all inventory and the US distribution center, as well as the necessary workforce in the US and UK<\/b> employees.\u201d<\/p>\n
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The final purchase price, amounting to $30 million in cash, is subject to \u201cadjustments based on inventory levels at closing.\u201d<\/p>\n
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The cord between LuxExperience and The Outnet will not be cut immediately, as the former will maintain a commercial relationship with the latter and provide it with \u201ccertain operational and IT services, billed at cost<\/b>, for a period after closing,\u201d the duration of which has not been specified.<\/p>\n
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The Outnet<\/b> was founded in London in 2009 by Natalie Massenet<\/b>. The idea of the Franco-British entrepreneur, who had already found success with her previous pioneering luxury e-commerce platform, Net-A-Porter, created in 2000, was this time to sell unsold items from luxury brands and designers from previous seasons online at reduced prices.<\/p>\n
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The Outnet has been part of YOOX Net-A-Porter since the 2015 merger of Italian company Yoox (also a player in discounted luxury e-commerce) with Net-a-Porter. YNAP (Yoox Net A Porter) was acquired three years later by Swiss giant Richemont. The Outnet’s net sales were \u20ac260 million in fiscal year 2025.<\/p>\n
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Its future owner, The O Group, is a New York-based branding and creative consulting agency specializing in luxury and premium brands. Its shareholders include Joseph Edery, founder and CEO of Icon Luxury, which specializes in luxury distribution and licensing, and Ritesh Punjabi, an investor and entrepreneur active in the luxury and retail sectors in the Middle East.<\/p>\n
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These profiles convinced LuxExperience that it had found the right partners.<\/p>\n
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\u201cWe are very pleased to have found the optimal solution for both The Outnet and our Group,\u201d said Michael Kliger, CEO of LuxExperience, who believes that \u201cthis transaction will enable The Outnet to realize its full potential under a renewed independent and autonomous business model.\u201d<\/p>\n
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The sale of The Outnet will also enable LuxExperience to continue simplifying its operating model<\/b>. It will now be able to focus on its other discount platform, YOOX, and \u201ccreate the lean operating model it needs to return to growth and financial strength,\u201d Michael Kliger emphasized, as well as \u201caccelerate the global transformation plan to establish an efficient infrastructure platform for NET-A-PORTER (women’s fashion, ed.) and MR PORTER (men’s fashion, ed.).\u201d<\/p>\n
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This development follows on from the plan announced by LuxExperience last April, after the acquisition of YNAP. In early September, the group announced \u201csignificant improvements in terms of efficiency and structure,\u201d with the elimination of approximately 700 jobs across several sites in order to \u201csimplify the business and use shared infrastructure where appropriate.\u201d<\/p>\n
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The group is expected to further improve its performance, which was already welcomed positively by the stock market when it announced its 2024-25 results at the end of September, exceeding all forecasts.<\/p>\n
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In the last quarter, the group’s revenue soared by almost 73%<\/b> to \u20ac587.8 million, instead of the expected \u20ac340.21 million, while its EPS (earnings per share) was 4.67, compared to the forecast 0.04!<\/p>\n
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However, the group was still weighed down by the activities taken over from YNAP, both in the \u201cluxury\u201d segment, selling current brand collections at full price, i.e., Net-A-Porter and Mr Porter (NAP\/MRP), and in the \u201coff-price\u201d segment (unsold, discounted, and capsule collections at reduced prices), i.e., Yoox and The Outnet.<\/p>\n
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The \u201cOff-Price\u201d segment (Yoox and The Outnet) deteriorated particularly badly in the fourth quarter, with net sales falling 17.4% to \u20ac159.1 million and adjusted EBITDA more than doubling its loss from \u20ac12.9 million to \u20ac28.5 million!<\/p>\n
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For the 2025 financial year<\/b> as a whole, the \u201cOff-Price\u201d segment also underperformed, with a decline of more than 13% in both net sales<\/b> to \u20ac792.8 million. However, the adjusted EBITDA loss was reduced by 14.1% to \u20ac96.2 million, thanks to an improvement in the average order value.<\/p>\n
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