Online Business

Richemont in talks to sell stake in online business to Farfetch – Reuters

Summary

High-end jewellery is displayed at a Cartier store on Place Vendome in Paris, France, July 2, 2019. REUTERS/Regis Duvignau

Richemont chairman says company not for saleBut in talks with Farfetch over stake in YNAPNet profit and sales jump in first halfShares surge as much as 10%<p data-testid="paragraph-0" class="Text__text___3eVx1j Text__dark-grey___AS2I_p Text__regular___Bh17t- Text__large___1i0u1F Body__base___25kqPt Body__la…….

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High-end jewellery is displayed at a Cartier store on Place Vendome in Paris, France, July 2, 2019. REUTERS/Regis Duvignau

  • Richemont chairman says company not for sale
  • But in talks with Farfetch over stake in YNAP
  • Net profit and sales jump in first half
  • Shares surge as much as 10%

ZURICH, Nov 12 (Reuters) – Richemont (CFR.S) is in advanced talks with online retailer Farfetch (FTCH.N) about selling it a minority stake in loss-making Yoox Net-a-Porter (YNAP) in a move likely to appease investors critical of the luxury goods firm.

Richemont, which owns brands such as Cartier and Piaget, said on Friday it would also invite other firms besides Farfetch to participate in turning YNAP into a neutral, industry-wide retail platform with no overall controlling shareholder.

Shares in the company controlled by South African billionaire Johann Rupert surged as much as 10% to a record high after the YNAP news and better than expected first-half results, outperforming the European retail goods sector (.SXQP).

“An early Christmas present for Richemont shareholders,” said Kepler Cheuvreux analyst Jon Cox.

Richemont has invested heavily in YNAP, trying to make it less capital intensive by moving away from owning all of its inventory to a hybrid model where some goods are owned by …….

Source: https://www.reuters.com/business/retail-consumer/richemont-h1-numbers-shine-thanks-jewellery-2021-11-12/