Mytheresa CEO Michael Kliger discussed YNAP's future under Mytheresa ownership.
Within the $70 billion luxury market, Mytheresa sees “a huge opportunity” to take a bigger piece of the pie, Michael Kliger, the chief executive officer of Mytheresa, said.
“We are the strongest player. We have seen a lot of opportunities to engage with different companies. We believe YNAP is a great company, and this combination resolves what always was a challenge for us — to cover more space in the market,” Kliger said.Within its own space, “Mytheresa has been hugely successful because we are very specific, ultra luxe, and highly curated,” Kliger said. “We don’t want to give that up because we can still grow with that.
Kliger did acknowledge that many of the labels that Mytheresa sells are also sold on Net-a-porter. However, “the selection and curation matters,” Kliger said. “What we pick from the Gucci collection or what we pick from a Valentino collection is different and should be different from what the buyers of Net-a-porter select. It’s the duration, the inspiration, and the brand identity — that’s the difference.
YNAP’s off-price business will have with its own infrastructure and processes, he added. “We’ll make them leaner because their requirements are actually much less than the luxury business.
Under the terms of the deal, Mytheresa gains 100 percent of YNAP, the 555 million euros YNAP had on its books, YNAP’s 100-million-euro credit facility for seasonal working capital needs, and no debt. For all of that, Richemont will receive 33 percent of Mytheresa through a new stock issue. Richemont will also get a seat on the Mytheresa board, but will have no operational role in the company.
“After closing the deal, I want the brands to continue to compete but within their positioning, and not gravitate to the same positioning,” Kliger said. “I want the Net-a-porter buying team to fight hard to get the best fashion pieces and create the best activations for their customers.
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