Yoox Net-A-Porter, the online luxury goods retailer, is offering proof that shoppers are increasingly shedding their qualms about buying expensive clothes and handbags on the internet.
The company — formed from the 2015 merger of Yoox, which sells off-season designer clothing at a steep discount, and Net-a-Porter, a slick e-boutique that sells the latest “it” brands — saw annual revenue jump 12.4 per cent to €1.87bn last year as bargain hunters and fashionistas flocked to its sites.
Stripping out currency fluctuations — notably the collapse in sterling following the UK’s vote to leave the European Union — revenue grew 16 per cent during the year. While the pace is just shy of the 17 to 20 per cent growth range the company has said it was targeting, it is still a commendable performance given the uncertain outlook for the wider luxury goods sector.
Adjusted net income rose 16 per cent to €69.3m, ahead of analysts’ expectations of €66.7m.
The company’s off-season sites such as The Outnet and Yoox.com posted sales growth of 16.8 per cent during the year, to €696.8m. Its in-season sites, namely Net-a-Porter.com and Mr Porter, notched an 8.4 per cent increase in sales, to €968.6m.
The strongest gains came from YNAP’s small but growing online flagship division, where it runs online stores on behalf of designers such as Armani and Valentino. Sales at the unit jumped 17.1 per cent to €205.3m as it won new contracts.
Shares in YNAP, down 12 per cent over the past 12 months, closed 1.2 per cent higher in Milan.