YNAP revenues soar 17.7 percent in FY16

In 2016, Yoox Net-A-Porter Group consolidated net revenues, net of returns and customer discounts, of 1,870.7 million euros (1,968 million dollars), were up 17.7 percent on an organic and 12.4 percent reported basis. In the fourth quarter, consolidated net revenues totalled 538.2 million euros (566 million dollars), up 19.2 percent on an organic basis and 11.4 percent reported, marking an acceleration on the first nine months of the year.

Multi-brand segments performed well in 2016

In 2016, the Multi-brand In-Season business line, which includes Net-A-Porter and Mr Porter, recorded net revenues of 968.6 million euros (1,019 million dollars), up 16 percent on an organic basis. Including the performance of TheCorner and ShoeScribe - which accounted for 1.1 percent of the Group’s net revenues in 2016 - this business line grew 13 percent at constant exchange and 8.4 percent reported.

In the fourth quarter, net revenues reached 263.4 million euros (277 million dollars), up 17.6 percent on an organic basis. Including TheCorner and ShoeScribe - which were discontinued on August 31, 2016, thus not contributing to the fourth quarter, this business line grew 11.6 percent at constant exchange and 5.7 percent reported.

The Multi-brand Off-Season business line, which includes Yoox and The Outnet, recorded net revenues of 696.8 million euros (733 million dollars), up 19.5 percent at constant exchange and 16.8 percent reported. In the fourth quarter, net revenues totalled 200.6 million euros (211 million dollars), up 16.4 percent at constant exchange and 14.1 percent reported.

The Online Flagship Stores business line includes the design, set-up and management of the online flagship stores of some of the leading global luxury fashion brands. This business line achieved consolidated net revenues of 205.3 million euros (216 million dollars), up 19 percent at constant exchange and 17.1 percent reported. Gross merchandise value advanced by 23.7 percent on an organic basis and 20.3 percent reported, with positive performance of the joint venture with Kering.

In the fourth quarter, the Online Flagship Stores registered a strong net revenue acceleration, translating into consolidated net revenues of 74.3 million euros (78 million dollars), up 30.7 percent at constant exchange and 27.4 percent reported. GMV was up 34.6 percent on an organic basis and 27.7 percent reported.

YNAP posts revenue rise across geographies

UK ended 2016 with net revenues of 269.9 million euros (284 million dollars), up 15.3 percent at constant exchange and 2.3 percent reported. The company said, this performance was supported by an improved trend in the final quarter of the year, following softer second and third quarters as a result of Brexit. Specifically, in the fourth quarter, the UK posted net revenues of 78.2 million euros (82 million dollars), up 16.6 percent at constant exchange but down 1.7 percent reported, penalised by the depreciation of the Euro/Sterling exchange rate.

North America net revenues of 573.9 million euros (603 million dollars), were up 16.3 percent on an organic basis and 14.1 percent reported. In the fourth quarter, North America’s net revenues totalled 172.9 million euros (181 million dollars), up 18.7 percent on an organic basis and 14.5 percent reported, an acceleration of 15.5 percent on organic basis on the first nine months of the year driven by strong performance of the In-season and Online Flagship Stores business lines.

In 2016, Italy achieved net revenues of 124.8 million euros (131 million dollars), up 12.6 percent at constant exchange and 12.5 percent reported. The fourth quarter saw net-revenue growth of 4.8 percent at constant exchange and 4.6 percent reported to 37.4 million euros (39 million dollars). In the full year, net revenues in Europe (excluding Italy and the UK) were 488.1 million euros (513 million dollars), up 13.2 percent at constant exchange and 11.1 percent reported. Fourth-quarter net revenues totalled 134.4 million euros (141 million dollars), up 11 percent at constant exchange and 10.2 percent reported. The company said, this result reflects particularly strong growth in Russia and continued softer performance in France and Germany.

Asia Pacific net revenues of 302.3 million euros (318 million dollars), were up 27.1 percent at constant exchange and 24.8 percent reported. The fourth quarter achieved net revenues of 88.1 million euros (92 million dollars), up 36 percent at constant exchange and 32.4 percent reported, confirming the positive momentum, driven by China, Hong Kong and Japan. Finally, Rest of the World recorded full-year net revenues of 111.7 million euros (117 million dollars), up 16.5 percent at constant exchange and 6 percent reported. The fourth quarter saw 10.2 percent net revenue growth at constant exchange but decline of 4.3 percent reported, reflecting excellent growth in the Middle East.

Sees improvement in gross profit across segments

Gross profit in the Multi-brand In-Season business line came in at 401.3 million euros (422 million dollars), up 10.1 percent, with a margin of 41.4 percent compared to 40.8 percent in 2015 reflecting a positive retail margin performance achieved despite the sharper depreciation of the British Sterling against the Euro in the second half of the year.

Gross profit in the Multi-brand Off-Season business line was 62.4 million euros (65 million dollars), up 15.1 percent, with a margin of 37.7 percent compared to 38.2 percent in 2015 entirely reflecting the adverse exchange rate movements against the Euro, especially of the British Sterling and the Russian Rouble.

Gross profit in the Online Flagship Stores business line totalled 68.7 million euros (72 million dollars), up 6.2 percent, with a margin of 33.5 percent compared to 36.9 percent in 2015.

In 2016, adjusted EBITDA was 155.7 million euros (163 million dollars), up 17 percent and the adjusted EBITDA margin improved to 8.3 percent, compared with 8 percent in 2015. The company said, after 12.4 million euros (13 million dollars) of non-cash costs relating to share-based incentive plans, EBITDA amounted to 143.4 million euros (150 million dollars), with a margin at 7.7 percent in 2016, up from 7.6 percent in the previous year. In 2016, adjusted net income amounted to 69.3 million euros (72 million dollars), an increase of 16 percent, with a margin at 3.7 percent compared to 3.6 percent in the previous year.

YNAP expects to grow net revenues in line with its 5-Year Plan and achieve an improvement in the adjusted EBITDA margin in 2017. The Group plans to invest approximately 160 to 170 million euros (168 to 178 million dollars) in 2017, primarily in technology. In particular, these investments will be dedicated to the roll-out of the new core e-commerce platform for The Outnet and select online flagship stores and the completion of the omni-stock programme for the Off-Season business.

Picture:Yoox