Yoox Net-a-Porter Group Will Close Shoescribe and The Corner Next Year

Post-merger, the Milan-based online retailer also reported a 50-percent increase in profits.
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Maria Bobila
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Post-merger, the Milan-based online retailer also reported a 50-percent increase in profits.
Yoox Net-a-Porter Group's CEO Federico Marchetti. Photo: Jacopo Raule/Getty Images

Yoox Net-a-Porter Group's CEO Federico Marchetti. Photo: Jacopo Raule/Getty Images

Yoox Net-a-Porter Group has plans to close its multi-brand websites, Shoescribe and The Corner. The Milan-based luxury online retailer discovered an overlap of customers and brands between the two previously mentioned sites and its other multi-brand online stores, including Yoox, Net-a-Porter and The Outnet. Therefore, by the end of the spring/summer 2016 season, customers who visit Shoescribe and The Corner online will be redirected to the Group's other websites with an expectancy to limit the loss of revenues. Additionally, the employees who work for these two particular websites will be reallocated within the Group's staff.

Both Shoescribe and The Corner attributed 2.4 percent of Yoox Net-a-Porter Group's net revenues, as reported in its pro-forma results ended Sept. 30 and including the first nine months of 2015. This is the first time the combined group had provided its financial reports since its announced merger at the end of March. Previously released reports include Yoox's standalone earnings report for the first half of 2015 (sales were up), as well as Net-a-Porter's fiscal 2014/2015 year (the company finally turned profitable). Post-merger, the group experienced a substantial increase in its adjusted net income — 50.4 percent to € 32.4 million (about $36 million), versus € 21.5 million (about $29 million) from the first nine months of 2014.

Yoox Net-a-Porter Group's CEO Federico Marchetti provided this celebratory statement:

The synergies of the merger have exceeded our expectations and, based on the detailed work of our teams, we have raised our target [of cost savings] from €60 million (about $94.3 million) to €85 million (about $66.6 million). I am thrilled with this result as it is testament to the strategic rationale of this game-changing merger. We are just at the beginning of making our vision a truly exciting reality.

In terms of online performance, Yoox Net-a-Porter Group received an average of 26.1 million monthly unique visitors during the first nine months of 2015, compared to last year's 22.4 million. There were 5.0 million orders placed (versus 4.1 million), as well as 2.3 million active customers — an increase from last year's total of 2 million.

With plans to execute marketing and commercial initiatives, along with upcoming holiday campaigns, Yoox Net-a-Porter Group expects "to continue to see business growth also in the fourth quarter of the year."