Yoox-Net-A-Porter H1 revenues accelerate 15.8 percent

Consolidated net revenues at the Yoox Net-A-Porter Group in the second quarter of 450.8 million euros (502 million dollars) increased 17 percent at constant exchange rates and 12.8 percent at current exchange rates. This performance resulted in first-half net revenues of 897 million euros (999 million dollars), up 15.8 percent at constant exchange rates and 13.3 percent at current exchange rates.

In the first half of 2016, Yoox Net-A-Porter Group recorded a monthly average of 28 million unique visitors, which translated into 3.9 million orders, up 18.7 percent with an Average Order Value (AOV) excluding VAT of 335 euros (373 dollars). Active customers also increased to 2.6 million at 30 June 2016.

Reports positive results across channels

The multi-brand in-season business line, which includes Net-A-Porter, Mr Porter, TheCorner and Shoescribe, recorded consolidated net revenues of 252.4 million euros (281 million dollars), up 14.5 percent at constant exchange rates and 10.1 percent at current exchange rates. This quarterly performance contributed to first-half net revenues of 490.1 million euros (545.9 million dollars), up 13.1 percent at constant exchange rates and 10.5 percent at current exchange rates.

The in-season business line achieved important partnerships with new prestige brands: specifically, Prada debuted on both Net-A-Porter and Mr Porter in July 2016, Net-A-Porte introduced Tiffany in April 2016 and will welcome Moncler in August 2016, while Mr Porter launched Ermenegildo Zegna in July 2016. In addition, numerous exclusive capsule collections were unveiled on Net-A-Porter including Gucci for Net-A-Porter in May 2016, Dolce & Gabbana Portofino, Chloé Sun and Oscar de la Renta Caftan, which all launched in the second quarter. Mr Porter also welcomed several exclusive capsule collections, including Aspesi and Moncler Gamme Bleu.

In the second quarter, the multi-brand off-season business line, which includes Yoox and The Outnet, recorded consolidated net revenues of 156.1 million euros (173.9 million dollars), up 21.7 percent at constant exchange rates and 17.2 percent at current exchange rates. This performance translated into first-half net revenues of 318.3 million euros (354.6 million dollars), up 21.5 percent at constant exchange rates and 18.6 percent at current exchange rates. In June 2016, Yoox launched its second edition of the #YOOXSOCCERCOUTURE project to coincide with the 2016 European football championship, where 10 leading designers, including Marni, Paul Smith and Dries Van Noten, joined together to create a limited edition capsule collection ‘Made in Italy’ exclusively for Yoox. In addition, The Outnet introduced Golden Goose and Proenza Schouler handbags.

The online flagship stores business line, in the second quarter achieved consolidated net revenues of 42.3 million euros (47.1 million dollars), accelerating to 15.7 percent at constant exchange rates and 13.7 percent at current exchange rates. This quarterly result led this business line to achieve consolidated net revenues of 88.7 million euros (98.8 million dollars) in the first half of 2016, up 11.4 percent at constant exchange rates and 10.8 percent at current exchange rates. On June 23, 2016, the new online flagship store of Chloé was launched in Europe, the United States and in the Asia-Pacific region, including China.

Growth witnessed across all key markets

The Group recorded positive growth across all of its key markets over the period. Italy achieved strong acceleration in net revenue growth in the second quarter of the year of 22.5 percent at constant exchange rates to 29.2 million euros (32.5 million dollars), translating into net revenues of 57.5 million euros (64 million dollars) in the first half, up 19 percent. Positive growth was registered in the UK in the second quarter, with net revenues growing by 14.3 percent at constant exchange rates and 5.1 percent at current exchange rates to 70.2 million euros (78.2 million dollars). In the first half, net revenues totalled 135.2 million euros (150.6 million dollars), up 15.4 percent at constant exchange and 8.6 percent at current exchange rates.

Europe excluding Italy and the UK posted a marked acceleration in growth to 21.8 percent at constant exchange and 18 percent at current exchange rates in the second quarter with net revenues reaching 117.5 million euros (130.9 million dollars), with strong performance of France, Germany, Spain and Russia. This strong result contributed to first-half net revenues increasing by 17.3 percent at constant exchange and 14.3 percent at current exchange rates to 238.4 million euros (265.6 million dollars). North America posted net revenues of 135.1 million euros (150.5 million dollars) in the second quarter, advancing 10.9 percent at constant FX and 8.5 percent at current FX), while the first half grew by 12.5 percent at both constant and current exchange rates.

Asia Pacific achieved solid performance, with net revenues up 19.4 percent at constant exchange rates in the second quarter and 16.2 percent at current exchange rates, on the back of strong growth in Japan and China, which outperformed the Group’s average. This resulted in a net revenue increase of 17.5 percent at constant exchange rates in the first half and 16 percent at current exchange rates. Finally, Rest of the World marked acceleration in net revenue growth in the second quarter was 24.8 percent at constant exchange and 16.4 percent at current exchange rates, driven by the excellent performance of the Middle East. In the first half, net revenues grew 18.7 percent at constant exchange and 13 percent at current exchange rates.

Positive business outlook

In light of the results achieved in the first half of the year and the positive outlook for the online retail market, Yoox Net-A-Porter Group expects to achieve further revenue growth and an improvement in the adjusted EBITDA margin in 2016. All of the Group’s business lines and key markets are anticipated to positively contribute to this result. The company confirms its expectations to achieve net positive EBITDA synergies in 2016 and revises its guidance for capital expenditures to 140 million euros (156 million dollars) as a result of the depreciation of the British Sterling against the Euro.

picture:yoox