Amazon to acquire Net-A-Porter?
Speculation is rife that e-commerce giant, Amazon, is in talks with online luxury retailer Net-A-Porter for what could be its biggest acquisition yet.
Luxury goods group, Richemont, bought Net-A-Porter in 2010 for around €350 million (A$492.35 million).
Net-A-Porter, has seen huge growth in the last few years, and is reportedly worth more than £2 billion globally.
Founded in 2000, Net-A-Porter stocks more than 350 designers including Alexander McQueen, Chloé, Dolce & Gabbana, Isabel Marant, Jimmy Choo, Miu Miu, Stella McCartney, and Valentino.
In 2009, the company launched discount fashion website, The Outnet, and in 2011 created menswear website, Mr Porter. In 2014, Net-A-Porter Group’s publishing division launched the company’s first ever consumer magazine, Porter.
Following a series of investments, including a significant push into fashion, Amazon surprised the market with far better than anticipated Q4 profit results.
Amazon posted earnings of $US214 million ($A275.88 million) in the fourth quarter as sales jumped 15 per cent to $US29.3 billion, swinging to profit after two consecutive losing quarters.
The Seattle-based company faced pressure from shareholders to deliver profits even as founder Jeff Bezos invested in a vast array of projects.
For the full year 2014, Amazon posted a net loss of US$241 million on sales of US$89 billion.
Amazon has denied speculation of the Net-A-Porter acquisition.