Yoox meets expectations for Q2 and reaffirms FY forecast

ANALYSIS_ Online fashion retailer Yoox has reported a 30 percent increase in its

second-quarter core profit, in line with market expectations. Consequently, the Italian luxury e-tailer has confirmed its full-year forecast.

Yoox has registered sales of 111.5 million euros in the three months from March to June, that it a 15 percent ahead last year's same period's sales. The company explained the growth was mainly driven by its three own shopping websites.

Following the group's numbers, Yoox needs to see an accelerated growth in coming months leading to a full-year revenue growth of slightly more than 20 percent. "It is reasonable to expect a 2014 net revenue growth in the low-twenties at constant exchange rates," Yoox's head of financial communications told a conference call, reported Reuters.

Core profit, or earnings before interest, tax, depreciation and amortisation (EBITDA), came in at 9.8 million euros in the second quarter, trailing a Thomson Reuters SmartEstimate.

Italy, the domestic market for Yoox, has noticeably benefited from the rising usage of tablets and smartphones, which has led to a 26.6 percent jump in the regional sales in the period.

Shares in Yoox have lost 38 percent so far this year, hit like those of other online retailers by concerns over the rising costs and investment needed to support online sales.