- Prachi Singh |
In the first quarter of 2018, Yoox Net-A-Porter Group’s (YNAP) organic growth was 10.4 percent compared with the same period of last year. Consolidated revenues, net of returns and customer discounts, the company said, reached 517.5 million euros (616.7 million dollars), up 7.9 percent at constant exchange and 0.5 percent reported.
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Online stores attracted 244.8 million visits compared with 200.3 million in the same period of 2017, which translated into 2.4 million orders and the average order value (AOV) excluding VAT reached 314 euros (374 dollars) or 339 euros (404 dollars) at constant exchange rates, compared with 343 euros (408.8 dollars) in the first quarter of 2017. Active customers reached 3.2 million at March 31, 2018, compared with 3 million at March 31, 2017.
Highlights of YNAP’s first quarter results
In the first quarter, the multi-brand in-season business line, which includes Net-A-Porter and Mr Porter, recorded consolidated net revenues of 282.3 million euros (336.5 million dollars), up 14.1 percent at constant forex and 5.9 percent reported.
During the quarter, the multi-brand off-season business line, which includes Yoox and The Outnet, recorded consolidated net revenues of 183.3 million euros (218.4 million dollars), up 2 percent at constant exchange but 4.6 percent reported from net revenues of 192.1 million euros (228.9 million dollars) at March 31, 2017. This performance, the company added, reflects the decrease in The Outnet customer retention rate mainly due to low product availability in the fourth quarter, as well as the impact of a pricing strategy designed to mitigate the severe currency headwinds on Yoox.
The online flagship stores business line that includes the design, set-up and management of the online flagship stores of some of the leading global luxury fashion brands, recorded organic gross merchandise value growth of 21.8 percent on an organic basis. Taking into account the negative net perimeter effect resulting from discontinuations and additions, YNAP said, the online flagship stores business line achieved consolidated net revenues of 51.9 million euros (61.8 million dollars), down 1.5 percent at constant exchange and 7.4 percent reported.
YNAP’s performance across core geographies
The company witnessed positive growth at constant currency across all of its key markets in the first quarter of 2018. UK ended the quarter with net revenues of 68.8 million euros (81.9 million dollars), up 5.9 percent at constant exchange rates and 3.2 percent reported, due to the depreciation of the euro/sterling exchange rate. North America posted first-quarter net revenues of 153 million euros (182.2 million dollars), up 8.5 percent at constant exchange but down 5.1 percent reported, reflecting the sharp depreciation of the euro against the US dollar.
Italy achieved net revenues of 34.6 million euros (41.2 million dollars), up 10.4 percent at constant exchange and reported. First-quarter net revenues in Europe (excluding Italy and the UK) were 137.6 million euros (164 million dollars), up 4.3 percent at constant exchange and 2.3 percent reported. Net revenues in Asia Pacific of 93.4 million euros were up 13.4 percent at constant exchange and 2.5 percent reported, driven by Hong Kong and Japan.
In the first quarter of 2018, net revenues in rest of the world were 30.1 million euros (35.8 million dollars), up 4.9 percent at constant exchange and 0.6 percent reported.
YNAP expects to achieve organic net revenue growth in FY18
The company further said that in light of the positive outlook for the online retail market, YNAP expects to achieve organic net revenue growth in line with its strategic plan. All of the group’s business lines and key markets are expected to positively contribute to this growth and it expects to deliver an improvement in the adjusted EBITDA margin at constant exchange rates.
The group also plans to expand its operations with the opening of a new in-season hub in Milan and additional spaces at the Interporto logistics pole in Bologna.