MILAN — Yoox Group on Wednesday reported solid growth in the three months ended March 31, lifted by gains in all its main markets and at both business channels, although its bottom line was dented by currency headwinds.
The Italian e-tailer confirmed its positive 2014 outlook as it expects further global growth, strengthens its mobile and cross-channel offerings and leverages its multi- and mono-brand stores, including Dsquared2, a partnership agreement renewed this week for another five years.
In the first quarter, net profit totaled 900,000 euros, or $1.2 million, down 13.4 percent compared with 1.1 million euros, or $1.4 million, in the same period last year. Profits were impacted by higher depreciation and amortization related to technology investments and higher financial charges associated with unrealized exchange-rate losses and interest expenses.
Revenues rose 14.6 percent to 126.5 million euros, or $173.3 million.
“We are satisfied with these results, although currency volatility is not helping,” founder and chief executive officer Federico Marchetti told WWD. “Yoox continues to grow and is part of a sector that still has much growth potential.”
Marchetti remarked on the gains in Italy, which was up 19.7 percent, with sales of 20 million euros, or $27.4 million, boosted by mobile sales. “This to me is very interesting, it’s an amazing result [given the economy in the country].”
The rest of Europe grew 15.2 percent with “exceptional” results in the U.K. Other countries grew 24 percent, led by China, where Yoox is accelerating due to an expansion in February following a new logistic setup.
Japan was up 10.3 percent, but would have grown 27.5 percent at constant exchange, and the U.S. showed an 8.5 percent increase, but would have risen 12.5 percent at constant exchange.
In the period, global operating profit climbed 30 percent to 2.4 million euros, or $3.3 million.
Earnings before interest, taxes, depreciation and amortization rose 34 percent to 8.1 million euros, or $11.1 million.
Dollar figures were converted from the euro at average exchange rates for the periods to which they refer.
Marchetti underscored the relevance of the renewal of the Dsquared2 agreement. “This is very important — it’s one of our top stores in terms of revenues and the brand has one of the highest online penetration on its total sales. It’s a benchmark for us,” said the entrepreneur of the collaboration, which started in 2009 selling on Yoox’s site Thecorner.com and moved onto the brand’s own store.
Dean and Dan Caten, founders and creative directors of Dsquared2, were equally enthusiastic about the agreement. Dan Caten said online sales last year accounted for 3 percent of the company’s overall revenues, which totaled 195 million euros, or $257.4 million, and that, as the brand extends to other product categories, the online channel allows it to offer all the label’s merchandise, compared with its “smaller” brick-and-mortar stores.
The performance of the brand’s e-store is so relevant that it drives retail strategies. “We have decided to open in Los Angeles, New York and Miami based on the sales of our online store,” said Dean Caten. “Americans are our biggest online customers.”
Digital commerce grew on the twin brothers, who were initially skeptical of its potential. “It’s been a learning experience. At first, we were not so keen, so we decided to link up with experts. We didn’t know who bought online, but then we started seeing how successful it was; we didn’t expect it and it’s opened our eyes on our customer base,” said Dan Caten.
The brothers have since eagerly embraced social media, “investing money on social network videos and support to create excitement online. A lot of Web sites don’t look exciting, but we want [our online store] to be informative, clear, as simple as possible to navigate, functional and look good.”
Asked to explain why the Dsquared2 site is so successful online, Marchetti said, “Their product and target customer are in line [fitting the Internet] but this would not be enough. They have a clear managerial online strategy that is well communicated within the company, a well-executed management of the store and the designers are actively engaged. They have fun with it and the store reflects their brand.”
He said there is an ambitious five-year plan, with hopes of a triple-digit growth of this store.
Responding to a question about his views on the activity of competitors such as Alibaba Group, which is filing for a U.S. initial public offering, Marchetti said he was “studying the situation. I think this can be good for Yoox. When we launched our IPO in 2009, we were the only other brand with Asos. Scarcity can be positive, but also a disadvantage, more comparables can help us in the management of expectations of the market.”
Marchetti confirmed the group’s outlook for 2014, expecting further growth of sales and profitability this year, boosted by all markets and both business channels.
There'll be no rest for those headed to Europe for men's, as Paris just closed the gap with Milan. According to a provisional calendar released by the Chambre Syndicale, Paris Men's Week will now open a day earlier on January 16. See new highlights on the official lineup on WWD.com. #wwdnews #wwdfashion (📷: @kukukuba)
BREAKING: Jonathan Saunders is leaving @DVF. The designer has resigned from his position as chief creative officer of Diane von Furstenberg, the company said in a statement on Friday. At the time of his hire, von Furstenberg said Saunders’ arrival symbolized and facilitated her stepping back from the day-to-day duties that occupy the work of a full-time creative director. The British designer joined DVF in May 2016 and was in charge of all product categories. #wwdnews
For @versace_official’s spring ad campaign, the brand emphasized the archival prints from the spring tribute collection dedicated to the late Gianni Versace. Closing out the show were five of Gianni’s favorite models: Cindy, Naomi, Carla, Helena, and Claudia. Bowing on December 18, the new campaign is yet another tribute to supermodel-dom as the images by Steven Meisel are fronted by @iamnaomicampbell, @cturlington, @gisele and more. #wwdfashion
Four-time Oscar-nominated actress Annette Bening has been waiting 20 years to play Gloria Graham in "Film Stars Don't Die in Liverpool," which will be released on December 29. The movie about Graham – a Hollywood star known for her controversial relationship with a younger Englishman named Peter Turner – is based off a memoir Turned wrote. "She felt vulnerable to him, because she loved him, she really did love him. And anyone that we really truly are in love with, we re vulnerable to in a very deep way," said Bening. Read our full interview with the modern icon of an actress on WWD.com. #wwdeye (📷: @ninebagatelles; Styled by @cristinaehrlich)
The crisp white button down: a staple that can be dressed up or down and accessorized throughout the decades. Here, on a Art Basel-goer in 2017 on the left and on the iconic Audrey Hepburn in “Roman Holiday” in 1953 on the right. #tbt #wwdfashion (📷: Andrew Morales)
Known for her work with @victoriassecret, 25-year-old model @georgiafowler is raising her profile in Hollywood. Fowler stars in @vincecamuto’s holiday campaign, which launched in partnership with “Pitch Perfect 3.” “Almost every shoot with Vince Camuto, I’ve had to face a fear…It was definitely a challenge. I’m so grateful for it, though. I’ve always wanted to be a pop star, so that was the perfect chance,” Fowler said. Head to WWD.com to read about Fowler’s experience modeling, including at the #VSFashionShow, and her relationship with Nick Jonas. #wwdeye (📷: @jilliansollazzo)
EXCLUSIVE: Huda Kattan just became the first beauty influencer to land a major beauty deal. Kattan's business, @hudabeauty, has received a minority investment from private equity firm TSG Consumer Partners. The brand, which industry sources say is on track to do $200 million in retail sales for 2017, will receive support on product, retail and geographic expansion through the deal. Get all the details on the deal and read @_a_collins' interview with Kattan on WWD.com. Link in bio. (📷: @jgreenery) #wwdbeauty #wwdnews
Peruvian model @juanaburga_official – who is known for walking the runways of @rodarte, @viviennewestwood and @torybuch – is making the move to the big screen with drama “Los Últimos.” The film premiered in Argentina in November and arrives in the U.S. and Europe in 2018. On making the switch from modeling to acting, Burga told WWD: “It’s a completely different thing – a lot of people think it’s similar or try to connect things, especially like getting used to the camera or being looked at all the time or playing these different characrers, but film is a completely different story.” #wwdeye (📷: @jgreenery)
London’s newly opened @designmuseum will look back on the life and work of Azzedine Alaïa in a show that the designer helped to curate before he died of heart failure last month. The retrospective, which Alaïa had worked on with Mark Wilson, chief curator of the @groningermuseum, will look at the impact of his work worldwide. The show, “Azzedine Alaïa: The Couturier,” will run from May 10 to October 7. Read more about the exhibit on WWD.com #wwdnews #wwdfashion (📷: @zefashioninsider)