French luxury goods group PPR is looking to set up an e-commerce venture with Italian online fashion retailer Yoox after signing a memorandum of understanding (MoU) last week.

The agreement aims to define guidelines for the joint management of the e-commerce operations of some of PPR's luxury brands. The MoU includes Bottega Veneta, Yves Saint Laurent, Alexander McQueen, Balenciaga, Stella McCartney and Sergio Rossi brands.

PPR and Yoox intend to continue negotiations to close a definitive agreement in the coming months.

The announcement follows reports last week that shares in Yoox surged after reports emerged that the company was allegedly in talks with PPR to set up an online venture.