Will the Farfetch-YNAP Deal Work? It’s Complicated.

This week, Swiss luxury group Richemont announced that it is selling 47.5 percent of loss-making Yoox Net-a-Porter (YNAP) to rival Farfetch as part of a complex agreement that contains provisions for a full acquisition within a few years.

The deal values YNAP at around €1 billion, sharply down from both its €5 billion valuation in 2018, when Richemont acquired full control of the group, and recent estimates, which valued YNAP at about €3…