Yoox Accelerates Growth Ahead of Net-a-Porter Merger

Profits will likely take a hit after the merger finally takes place.
Avatar:
Dhani Mau
Author:
Publish date:
Social count:
181
Profits will likely take a hit after the merger finally takes place.
Yoox CEO Federico Marchett. Photo: Gustavo Caballero/Getty Images for The New York Times International Luxury Conference

Yoox CEO Federico Marchett. Photo: Gustavo Caballero/Getty Images for The New York Times International Luxury Conference

Just last week, Yoox shareholders gave the company the official go-ahead to merge with Net-a-Porter. The deal is now expected to be done by October. 

It's already affected Yoox's bottom line, however: In its earnings report for the first half of 2015, the company reported a net income of €0.1 million after €5.2 million (about $5.7 million) in "non-recurring costs" related to the merger. Aside from that, revenue was healthy at €284.6 million ($311.1 million), up 19.6 percent over the same period last year, and up 14.8 percent at constant exchange rates.

The growth owes to the success of Yoox's multi-brand sites — yoox.com, thecorner.com and shoescribe.com — as well as its mono-brand business, which includes the design, set-up and management of other luxury brands' e-commerce sites — 38 of them, to be exact. The former makes up 73 percent of its revenue, while the latter makes up the remaining 27 percent. On the multi-brand front, consolidated net revenues were up 18.9 percent to €206.8 million ($226 million), while mono-brand revenue grew 21.3 percent to €77.8 million ($85 million). 

The group's success can also be measured in customer numbers: Average monthly unique visitors to its directly owned sites were up 26 percent to 17.7 million, while active customers increased 15 percent to 1.3 million. (Though this also means it would be smart to work on increasing conversion.)

It's a good thing sales are up, as Yoox's merger with Net-a-Porter will likely continue to negatively affect its bottom line: The half-year report states that it expects to incur "extraordinary expenses related to the transaction as well as integration costs." Not to mention, Net-a-Porter itself is barely profitable, and only became so this year.