YNAP beats expectations thanks to smartphone sales
Online luxury retailer Yoox Net-a-Porter reported first half earnings that beat the Street’s expectations thanks to an uptick in mobile usage amongst consumers. The company’s mobile platform now accounts for more than half of its total sales. Adjusted earnings before interest, taxes, depreciation and amortization increased by 28% to €98 million – a significant beat of the €90 million analysts had predicted. Organic sales rose by 20% - a percentage point higher than they rose in the first quarter (both taken year over year) and in line with analysts’ estimates of €1 billion.
YNAP’s share price has risen by 10% in the last 30 days!
SOURCE: Yahoo Finance
Federico Marchetti, the company’s CEO, addressed the shift towards mobile head on, saying: “since the second quarter we’ve seen a continued acceleration within our range. We’ve decided to be a company centered on mobile, and we expect that percentage to keep growing every week.”
The company confirmed its long-term guidance of annual growth between 17% and 20% through to 2020, and Marchetti said that the company increased its market share of online luxury sales from 10% last year to 11% in the last quarter. This is significant: according to researchers at Bain & Co., luxury ecommerce will remain the fastest-growing channel for high-end products until at least 2020.
Dominion holds Yoox Net-a-Porter in its Global Trends Luxury Fund.
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