Rumor: Amazon in Talks to Acquire Richemont’s Net-a-Porter?

In eCommerce, What's New, Industry News by Accessories Staff

AmazonSeattle—Could Internet behemoth Amazon be ready to gobble up Net-a-Porter, the luxury website owned by Swiss firm Compagnie Financière Richemont? According to what a source close to the talks told Forbes is that Amazon hopes to assure its share in the luxury online marketplace by purchasing Net-a-Porter.

If Amazon were to acquire Net-a-Porter for an estimated 2 billion euros (about $2.19 billion) it would be the biggest deal Amazon has accomplished, larger than its $1.1 billion acquisition of Twitch and its $1.2 billion purchase of Zappos.

Amazon Issues Denial

However, Amazon today denied it was in any kind of acquisition talks for Net-a-Porter.

Such an acquisition would seem to make sense because Amazon has been unsuccessful with its previous attempts to corner the luxury market online.

Spring Look at Net-a-Porter--Haute Bohemian  ETRO Official’s embellished coverup and Chloé’s gladiator wedges

Spring Look at Net-a-Porter–Haute Bohemian ETRO Official’s embellished coverup and Chloé’s gladiator wedges

CEO Jeff Bezos had told the New York Times in 2012 that Amazon intended to improve its presence in high-fashion retailing sector as the profit margin was much higher for luxury clothes.

“Amazon has been trying to get into the luxury fashion space for quite a few years, and has unfortunately been unsuccessful,” said Dalia Strum, professor at the Fashion Institute of Technology told Luxury Daily.

On the other hand, Net-a-Porter has seen its popularity expand—claiming more than 2.5 million hits per month–even though it has been unprofitable. Net-a-Porter posted sales for the 12 months ending on March 29, 2014 of about $835 million, up almost 23% from the previous year. Losses in that period were more than $20 million, down from the $31 million loss in the 12 months prior.

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