PARIS, Nov 10 (Reuters) – Richemont (CFR.S) labels are transferring forward with the switch of their on-line companies to Farfetch (FTCH.N) expertise, which they’re happy with, executives on the Swiss-based group mentioned Friday.

However, they declined to touch upon the progress of a deal to switch a part of Richemont’s wholly on-line YNAP style and equipment enterprise to the U.S.-listed firm.

Richemont on Friday reported an extra 527 million euro write down on YNAP for the final six months, which it classifies as held on the market and mentioned that YNAP gross sales had been down 10% at fixed charges over the interval.

The adoption of Farfetch expertise to run the web enterprise of Richemont labels is a part of a wider settlement for Richemont to promote a 47.5% stake in YNAP in trade for greater than 50 million Farfetch shares, introduced in August 2022.

“Everything we expected in terms of technology from our Farfetch friends, they’ve delivered,” Richemont chairman Johann Rupert instructed analysts on an earnings name.

“We are satisfied, we believe that it’s going to enhance our business model,” he added, citing the necessity to bulk up information of purchasers and information.

When requested if the corporate might get well enterprise dealt with by Farfetch platforms if issues had been to go improper, the manager mentioned with out elaborating that the group had safeguards in place.

Financial troubles at Farfetch have raised questions in regards to the deal, which was lately cleared by European authorities, the final regulatory approval wanted.

Farfetch, which helped persuade many luxurious manufacturers to embrace on-line promoting with an progressive enterprise mannequin, has struggled to succeed in break-even due to excessive expertise and advertising and marketing prices, additional difficult by a weakening outlook for style gross sales.

Farfetch shares have fallen by greater than 60% previously six months. Bernstein analysts say the corporate’s difficulties “could have ripple effects through an already suffering industry”, with greater than 500 Italian boutiques relying on its platform.

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