Yoox expects 2014 to be prosper after strong Q1

Yoox expects further revenue and profit growth in 2014, advanced the Italian online retailer, which has just reported a 14.6 percent rise in net sales for the first quarter. Strong performance in Italy and the rest of the Old Continent boosted trade for the period. Revenue for the first quarter came in

at 126.5 million euros, broadly in line with analysts' expectations, highlighted Reuters. "All of the group's key markets and both business lines are expected to contribute positively to ... growth" in sales and profits, the company said in a statement.

Howev

er, quarterly net profit was weighted by continued and substantial investment in technology and the impact of currency fluctuations. Profit for the first three months of Yoox´s fiscal year was 0.9 million euros, down 13.4 percent from the comparable period a year earlier. The company however reassured the market saying that it expected growth at its top and bottom lines for the rest of the year.

Yoox offsets heavy investment with growth in China

Yoox said it was seeing the benefit of its investments in China, where the introduction in February of its full range of brands helped drive sales there up 24 percent.

Meanwhile, Italy continues to account for the fashion e-tailer's 16 percent of sales. Yoox´s domestic market saw revenue rise 20 percent. Likewise, Yoox said purchases on smart phones and tablets in Italy now contribute 19 percent more to its revenue than in the rest of the world.

On a macroeconomic note, in a call with analysts, executives at Yoox explained that sales growth in Russia slowed in March due to the crisis in Ukraine, but picked up in April, which has lifted their spirits with regards to the second quarter.

“Trading in Russia has also been affected by currency volatility, but was nonetheless strong in January and February,” Yoox said. According to market sources quoted by Reuters, Yoox would make around 5 percent of sales and just under 5 percent of profits in Russia.

On a separate note, Yoox has renewed its partnership with Dsquared2 for a further five years.