LuxExperience has signed a deal to sell the assets powering THE OUTNET platform to The O Group LLC for a cash consideration of $30 million, subject to a customary inventory adjustment at closing. The move carves out its off‑price outlet business while accelerating LuxExperience’s transformation into a more focused luxury e‑commerce group.
What LuxExperience is selling
Under the agreement announced by LuxExperience, the company will transfer the full set of assets that run THE OUTNET: the brand IP, customer relationships, inventory, the US distribution center, and dedicated teams in both the US and UK. THE OUTNET, launched in 2009 as an off‑price sister to NET‑A‑PORTER, has become a key destination for past‑season luxury with net sales of around €260 million in FY25.
The buyer, The O Group LLC, is backed by investors including Joseph Edery and Timeless Group of Companies chief executive Ritesh Punjabi, described as experienced operators in luxury fashion and digital retail. Closing is expected in the first quarter of 2026, subject to regulatory approvals and standard conditions.
Why LuxExperience is divesting THE OUTNET
The sale is part of LuxExperience’s broader transformation plan announced in 2025. Following its acquisition of YOOX NET‑A‑PORTER, the group is simplifying its structure, disentangling off‑price from full‑price luxury, and concentrating outlet activities on YOOX rather than spreading resources across multiple concepts.
In the release, chief executive Michael Kliger calls the transaction an “optimal solution” that allows THE OUTNET to operate as an independent, stand‑alone business, while freeing LuxExperience to focus on building a more efficient shared infrastructure for NET‑A‑PORTER, MR PORTER, and YOOX.
What changes for THE OUTNET
For THE OUTNET, the deal is framed as a tailored solution that preserves its brand, data, and operational backbone but places it under owners wholly focused on its off‑price opportunity. The existing US logistics hub and UK‑ and US‑based teams are included in the perimeter, helping ensure continuity for customers and brand partners.
LuxExperience will continue to support the platform for a limited period after closing through a transition services agreement, providing operational and IT services at cost while THE OUTNET migrates to its own systems. That arrangement is designed to guarantee stability through the handover without disrupting day‑to‑day service.
How does this fit LuxExperience’s bigger picture
The divestment follows earlier measures LuxExperience set out to restore growth and profitability, including simplifying technology, concentrating off‑price on YOOX, and clarifying the roles of its luxury flags. In Q1 FY26 results, the group reported improved performance across its segments, citing higher net sales and stronger profitability as early signs that the transformation plan is gaining traction.
By selling THE OUTNET assets and maintaining a commercial relationship rather than full ownership, LuxExperience is signaling that its future rests on a streamlined portfolio: a profitable, tech‑driven luxury platform and a single scaled off‑price engine in YOOX. That sharper focus should make it easier to allocate marketing, tech, and merchandising investment where it moves the needle most.
What it means for brands and customers
For brand partners, the carve out is meant to protect the distinct positioning of THE OUTNET while clarifying where each channel sits within the broader luxury off-price ecosystem. Full price distribution will remain concentrated on NET A PORTER and MR PORTER, while YOOX and THE OUTNET play complementary roles in managing end-of-season inventory and reaching more value-oriented luxury shoppers.
Customers, meanwhile, are expected to see continuity in assortment and experience in the near term, with the same teams, logistics center, and brand identity remaining in place under the new ownership. Longer term, The O Group’s exclusive focus on the outlet opportunity could translate into sharper buying, more targeted marketing, and product curation that leans even harder into THE OUTNET’s role as a dedicated destination for past-season luxury at more accessible prices.
