Richemont executive team is negotiating to stop regulating losses for online retailers

The Swiss-based Richemont group is having a “high-profile conversation” with online retailers Farfetch and other companies over a deal to establish its lost Yoox Net-a-Porter business that has been difficult for investors.

The owner of Cartier and Van Cleef & Arpels warned that there were some issues that needed to be resolved in terms of pricing and its principles, and he stopped saying that it would make the business another company. But it said it would no longer be the majority of owners if the work was completed.

The move could alleviate long-standing concerns among investors revealed that the activist hedge fund Third Point has participated in Richemont and is looking to change, along with other shareholders such as US Artisan Partners.

Richemont shares rose more than 8 percent in morning sales.

Yoox Net-a-Porter, which sells clothing and accessories through two online stores, has lost market share to its competitors and has not benefited from the amount of online shopping during the epidemic. Its earnings were up 15 per cent to € 934m in the last six months of September, while job losses stabilized at € 141m.

Johann Rupert, chairman and co-founder of Richemont, said the potential alliance would create a “political neutrality” and allow high-tech companies to share the proceeds of the purchase of technology with the necessary business to compete in online marketing.

“This is not in line with the pressure on human rights activists. We started the project a long time ago,” he told reporters. “Maybe some people listen and read this correctly so they put in the money and make money.”

The Richemont campaign for freedom must be fought Rupert has strong control over the ideas of the team and the managers. Although a South African businessman owns only 9.1 per cent of the capital, he or she manages 50 per cent of the voting rights under two divisions.

Rupert declined to say who the other companies would be investing in the business, or how much they could invest. Richemont already has ecommerce cooperation in China by Farfetch and Alibaba.

Richemont recorded the best results for the first half of the year on Friday in the wake of the strong influx of its watches and jewelry, especially in the US. Group sales rose 65 percent on fixed income to € 8.9bn, before joining experts at € 8.5bn, but this shows a comparison to the previous year when the epidemic was growing in large markets.

Prior to Friday’s announcement, Richemont shares had risen nearly 50 percent this year, LVMH’s leading leader rose 38 percent but followed 60 percent of Hermes, with investors betting on the resumption of the epidemic and Chinese and US consumers continue to wreak havoc. But Richemont is still making a 10 percent reduction in the share, according to Citi expert Thomas Chauvet.

“The future is bright with positive results, even the announcement of YNAP instead of a roundabout that could be frustrating in the near future,” he said.