Thursday, 6 February 2014

Net-A-Porter Worth More Than £2 Billion, Says Bank

Net-a-Porter, the London-based fashion website owned by luxury goods giant Richemont, could be worth as much as £2.1 billion (€2.5 billion), according to research.

Bank Vontobel based its calculations about the website on recent valuations of German etailer Zalando which is understood to be preparing a £4 billion (€5 billion) stock market float, according to a report by Bloomberg.

The bank's estimate suggests that Net-a-Porter, which had sales of around €550 million last year, could be worth as much as 7 per cent of Richemont's total market value.

Rumours that Net-a-Porter could be sold were fiercely denied by Swiss-based Richemont in October. Vontobel said it did not expect the luxury etailer to be spun off any time soon.

We analysed the UK accounts of Net-a-Porter last month which showed the company made a loss of £23.2 million in the year to March 2013 compared to £27 million the year before. However, when share-based payments relating to its group ownership are taken into account, the company made a profit of just over £8 million.

Net-a-Porter is also investing heavily in establishing a global headquarters network to support ambitious expansion plans. Sales in the year to March last year increased 18 per cent to £434.7 million (€524.3 million).

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