YNAP reports 16.9 percent surge in FY17 revenues

The Board of Directors of Yoox Net-A-Porter Group S.p.A. (YNAP), in its preliminary result announcement for the financial year ended December 31, 2017, said that the company recorded consolidated net revenues, net of returns and customer discounts, of 2.1 billion euros (2.5 billion dollars), up 16.9 percent on an organic basis and 11.8 percent reported. In the fourth quarter, net revenues totalled 575.1 million euros (705 million dollars), up 13.2 percent on an organic basis and 6.9 percent reported.

Online stores attracted 842 million visits during the year compared with 715 million in 2016. The fourth quarter’s performance was particularly noteworthy, with visits up by 24.5 percent. The company’s orders also increased, totalling 9.5 million over the year and 2.7 million in the last quarter of 2017 and active customers grew to 3.1 million at December 31, 2017, compared with 2.9 million last year. In 2017, sales from mobile exceeded 50 percent of the group’s sales.

Review of YNAP’s annual financial performance

The multi-brand in-season business line, which includes Net-A-Porter and Mr Porter recorded consolidated net revenues of 1.1 billion euros (1.3 billion dollars), up 18.3 percent on an organic basis. Including the performance of TheCorner and Shoescribe - which were discontinued on August 31, 2016 - the in-season business line grew 15.8 percent at constant exchange and 11.9 percent reported. In the fourth quarter, net revenues of the segment totalled 295.1 million euros (362 million dollars), up 16.8 percent at constant exchange and 12 percent reported.

In 2017, the multi-brand off-season business line, which includes Yoox and The Outnet, registered consolidated net revenues of 789.6 million euros (968.7 million dollars), up 14.9 percent at constant exchange and 13.3 percent reported. Fourth-quarter consolidated net revenues were 204.4 million euros (250.7 million dollars), up 6.6 percent at constant exchange and 1.9 percent reported. This result, YNAP said, was driven by a strong performance achieved by Yoox, partially offset by the one-off effect due to a temporary lower product availability on The Outnet upon migration.

The online flagship stores business line includes the design, set-up and management of the online flagship stores of some of the leading global luxury fashion brands, including Armani and Chloe. In 2017, this business line recorded gross merchandise value growth of 20.8 percent on an organic basis. Taking into account the negative net perimeter effect resulting from discontinuations, the company added that the business line achieved consolidated net revenues of 217.5 million euros (266.8 million dollars), up 8.5 percent at constant exchange and 5.9 percent reported. In the fourth quarter, the online flagship stores achieved a GMV growth of 22.1 percent on an organic basis and consolidated net revenues of 75.7 million euros (92.8 million dollars), up 5.9 percent at constant exchange and 1.9 percent reported.

YNAP’s business highlights across its core markets

The company said that the group recorded positive growth across all of its key markets in 2017 despite the one-off effect due to temporary lower product availability on The Outnet upon migration, which impacted all regions, and particularly the UK and North America. UK ended 2017 with net revenues of 286.8 million euros (351.8 million dollars), up 13.7 percent at constant exchange and 6.2 percent reported, due to the devaluation of the euro/sterling exchange rate. In the fourth quarter, UK net revenues totalled 84.5 million euros (103.6 million dollars), up 10.3 percent at constant exchange and 8 percent reported.

North America, the group’s leading market, posted full-year net revenues of 632.2 million euros (775 million dollars), up 12.8 percent on a constant currency and 10.2 percent reported. Fourth-quarter North America’s net revenues totalled 171.1 million euros (209.8 million dollars), up 7.6 percent on a constant currency but negative 1 percent reported. Italy posted full-year net revenues of 142.6 million euros (174.9 million dollars), up 14.3 percent at constant exchange and 14.2 percent reported. In the fourth quarter, net revenue were up 17.7 percent at constant and current exchange rates to 44 million euros (53.9 million dollars). This growth was, the company said, was mainly driven by Yoox, which benefited from branding and marketing campaigns launched ahead of the holiday season.

For the year, total net revenues in Europe (excluding Italy and the UK) were 548.6 million euros (672.8 million dollars), up 12 percent at constant exchange and 12.4 percent reported. In the fourth quarter, net revenues totalled 147 million euros (180 million dollars), up 11.2 percent at constant exchange and 9.4 percent reported. Full-year net revenues in Asia Pacific totalled 355.8 million euros (436 million dollars), up 22.2 percent at constant exchange and 17.7 percent reported. In the fourth-quarter net revenues were 95.1 million euros (116.6 million dollars), up 14.2 percent at constant exchange and 8 percent reported driven by Yoox’s strong performance in Hong Kong. Revenues in the rest of the world reached 125.1 million euros (153 million dollars), up 18.2 percent at constant exchange and 12 percent reported in 2017. This result, YNAP said, benefited from a 23.5 percent or 22.5 percent reported net revenue growth in the fourth quarter.

Picture:Facebook/Yoox