Yoox Net-a-porter beats 1st quarter estimates on revenue
Online luxury fashion retailer Yoox Net-a-Porter (YNAP) posted revenue that beat analysts’ expectations for the first three months of 2017. The company saw a rise of 15.4% in revenue from the year-ago quarter to €515 million, with growth being driven by strong sales gains in North America and Asia Pacific. Consensus estimates on Wall Street were calling for revenue of €508 million.
YNAP’s share price is up by 17% over the past 30 days
SOURCE: Yahoo Finance
Organic revenues at a constant exchange rate, and inclusive of all online stores active at the beginning and end of the quarter, rose by 19.1%. This strong growth comes as luxury retailers see a rebound in the Asia Pacific region, the market of which previously lagged due to the twin threats of Beijing’s anti-corruption drive and concerns over economic health.
YNAP’s off-season sites (like The Outnet and Yoox.com) reported sales growth of 16.2% from the previous year, as shoppers clamoured for the attractive discounts offered therein. Across the board, the company said that visits rose by 12.4% from the first quarter of 2016 to 2.2 million. Additionally, these customers were more valuable this year than they were last year, with the average spend across Yoox’s platforms rising from €324 to €343.
YNAP’s earnings beat comes at a time when investors have a number of other reasons to be positive about the company. Innovation and diversification are top of YNAP’s agenda, and the company has recently announced a partnership with Valentino which will expand product offerings and see them enter brick-and-mortar stores. It has also started stocking Gwyneth Paltrow’s controversial – but incredibly popular – lifestyle brand Goop. Lastly, Net-a-Porter is launching a same-day delivery service for top London clients in September.
Dominion holds Yoox Net-a-Porter in its Global Trends Luxury Fund.
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