Net-a-Porter may be worth 2.5 billion euros

Net-a-Porter, which is set to launch its first glossy magazine tomorrow, could be worth as much as 2.5 billion

euros, according to an estimated made in comparison with the potential value of online German retailer Zalando by Bank Vontobel.

The potential value of holding company Compagnie Financiére Richemont's luxury online fashion retailer was estimated by Rene Weber, an analyst at Bank Vontobel, who approximated Net-a-Porter sales for the last year at 550 million euros.

In a note to clients, Weber added that while "the unit is unprofitable, it generates positive cash flow," according to Bloomberg Businessweek. Weber highlights that looking at a multiple of 3.7 to 4.3 times sales, the online luxury retailer could be worth 6 to 6 percent of Richemont's total market value of 39 billion euros.

Last year October, Richemont denied rumors circulating concerning the merger of Net-a-Porter with Yoox Group and announced it was going to invest in it's 'soft' luxury brands. Weber added that he predicts the online retailer's growth to "continue to outperform" and stresses that it will aid the drive Richemont's profits 2015.