YNAP says more than half sales in 2017 were via mobile
In a tipping point for Yoox Net-A-Porter (YNAP), the company has revealed that more than half of its sales in 2017 were made via a mobile device. This was most notable during Ecommerce holiday Cyber Monday, when as much as 96% of orders made were via mobile. Unsurprisingly, YNAP has declared that its native apps delivered “outstanding results” over the year, and the Net-A-Porter app was singled out in particular as an engagement driver. Given younger consumers’ preference for mobile browsing over desktops, this is great news for YNAP, and indicates that it’s technological innovations are keeping pace with customer demand.
YNAP’s share price has appreciated by 19% over the past year
Source: Yahoo Finance
YNAP also revealed revenues of more than €2 billion for 2017 – a 16.9% year on year. This was driven by strong engagement on its platform: the company saw over 840 million visits to its websites throughout the course of the year, and took more than 9.5 million orders from 3.1 million active customers. The only metric that suffered was average price of order (in 2017, €328, against €334 in 2016) – but more traffic made up for this shortfall, and fourth quarter revenues grew by 13.2% year on year after a blip in availability that damaged earnings in the third quarter.
The company’s CEO Federico Marchetti made the following comment over the results to the press: “We’ve had a very good year. Performance in the fourth quarter was strong across the business. Net-A-Porter, Mr Porter and Yoox did particularly well. The Outnet’s revenues were affected for a short period by the migration of its logistics centres. This is behind us now and product availability has been fully restored.”
In the coming year, YNAP will be debuting a new service aimed at third party brands it works with to show customers and inventory at the same time. With apps working overtime, logistics improving, and a clear strategy to drive shoppers mobile, YNAP is coming off a healthy year.
Dominion holds YNAP in its Global Trends Luxury Fund.
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