MILAN — Italian online fashion retailer Yoox Group SpA on Wednesday said first quarter net profits dropped slightly on the same period of 2013, to 1.1 million euros, or $1.45 million, from 1.2 million euros, or $1.57 million, mainly due to higher depreciation and amortization costs following investments in innovation, technology and in the firm’s distribution platform. Net revenues, at 110.4 million euros, or $145.73 million, jumped 21.4 percent following double-digit sales growth at the company’s multi- and mono-brand businesses as well as strong sales gains in all the firm’s geographic markets.
Dollar amounts have been converted at average exchange rates for the periods to which they refer.
In a statement released after the close of trading in Milan, the company — which sells fashion apparel and accessories directly to buyers through yoox.com, shoescribe.com and thecorner.com and manages online stores for brands including Armani, Diesel and Marni — said it had signed an agreement with Giorgio Armani SpA to handle the creative development of the brand’s new armani.com release, due in the third quarter of 2013.
The agreement, signed on May 7 but revealed Wednesday, concerns the “ideation and the development of the creative concept” for the new site, building upon the technological development and management of the site, as was the case previously.
The Armani deal, which follows a similar deal earlier this year with Italian fashion house Missoni, marks the firm’s successful push into creative work for high-end fashion clients.
In the statement, Yoox said it won the pitch “against competition from major global web agencies. Thanks to its in-house team, Yoox’s offering to the major fashion and luxury brands is therefore enhanced by a proposal that combines creative excellence with thebest e-commerce practice.”
The firm also said that it agreed a two-year extension — through all of 2017 — with Renzo Rosso’s Only the Brave (OTB) group for management of the masionmartinmargiela.com property. OTB produces the Diesel brand, among others. Yoox and OTB recently renewed the diesel.com site management contract for a further six years, Yoox said, adding that the two groups will “focus on operations in Europe and Japan and the online store will, potentially, be extended to China.”
Yoox added that the two companies “jointly decided to discontinue” operations at diesel.com’s U.S. operations at the end of 2013. The sales from the site represented “approximately 2%” of Yoox sales in 2012, the internet retailer said, however the site’s average order value was “significantly lower than the average for the mono-brand business line in the country.”
Overall, the group reported that its average order value in the first quarter of 2013 increased to 211 euros, or$278.54, from 199 euros, or $260.7.
In terms of business units, Yoox said that its multi-brand sites generated total net sales of 79.0 million euros, or $104.28 million, in the first three months of the year, up from 63.8 million euros, or $83.6 million, in the year-ago period. The sales growth was boosted by innovations included in new site releases and “from solid sales in China,” as well “a brand portfolio with an ever-higher positioning” at thecorner.com, Yoox said.
The mono-brand business unit — which includes the set-up and management of online stores for leading global fashion and luxury brands — saw its revenues increase by 15.7 percent on the year-earlier period. Revenues totaled 31.4 million euros, or $41.45 million in the first quarter.
All geographic markets — including Italy — posted double-digit sales gains, Yoox said.
North America remained the online retailer’s leading market, with revenues of some 22.9 million euros, or $30.23, representing nearly 21 percent of total group sales, an almost 17 percent increase on the year-earlier period.
In its statement, the company said that “in light of the positive results posted in the first quarter of 2013, the performance of online retail, the proven effectiveness and uniqueness of the Yoox business model, it is reasonable to expect that Yoox Group will continue to increase its revenues and profits in 2013.”
Yoox said it will continue to make investments targeted at servicing the “future sustained growth of the group” even as it continues to follow “internal initiatives to improve efficiency and ensure tight cost control.”
@chanel and @pharrell dropped what’s being dubbed as the world’s most exclusive sneakers yesterday. The Adidas Originals NMD Hu, which Williams designed in collaboration with Chanel and @adidasoriginals, has a waiting list of over 120K people who pre-registered online at chanelatcolette.fr –– and only 500 pairs are on sale. The singer predicted the resale value of the shoes could reach $40K. Read the full interview on WWD.com. Link in bio. #wwdfashion
@imanshumpert is diving deeper into his creative endeavors and relaunching his clothing line, Post 90s, and is helping to raise money for the hurricane victims in St. Maarten with a jersey he’s designed with his brother. The Cleveland Cavaliers player talked to WWD about kneeling during the national anthem, working with fashion brands and how he wants to be more than an @nba player. Read the interview on WWD.com #wwdfashion (📷: George Chinese)
Not only does #TheProfit return to CNBC tonight, but @marcuslemonis has launched @shopmarcus, a new shopping and lifestyle retail experience in Aspen and Chicago, with more locations to come. The retail stores offer in-store stylists and a variety of contemporary womenswear selections.
“It’s life, I’m going to face it,” @mingxi11 sighed. “I fell, but you know, I think the most important thing is that I get back up. I had the love, the help from my sister — the girl next to me Gizele [Oliveira] — she’s so nice. When I went backstage everybody was trying to comfort me like ‘Oh Ming, it’s OK.’ I’m really, really touched. I think it’s them who gave me the courage to go back on stage for the finale,” Xi told WWD of her fall at the @victoriassecret fashion show. (📷: David Fisher) #wwdfashion #vsfashionshow #victoriassecret
@louisvuitton tapped @therealpeterlindbergh for its latest city-centric photo book, which is part of a series called Fashion Eye. The primarily black and white book captures the spirit of Berlin in 57 images shot between 1989 and 2019. “Berlin is an inspiration for me, more than a city. I mean @millajovovich is simply Berlin!” said Lindbergh. #wwdfashion
“You know, I think audiences expect a certain performance so I have to deliver to them what they’re expecting to a certain degree. But I’m also a different actor and a different person, I have my own spin on the character,” says @noahegalvin of his takeover of the leading role in “Dear Evan Hansen” following the departure of @bensplatt, who originated the role. Read WWD’s interview with the 23-year-old actor on WWD.com #wwdeye (📷: @jilliansollazzo)
For pre-fall 2018, @etro created richly-colored wonderland, using tapestries, textiles and wallpapers from the Eastern world at large. The line featured floral and graphic prints and jacquard motifs, like this two-piece look featured here. #wwdfashion (📷: Giovanna Pavesi)
@kith is moving into children’s. The men’s and women’s streetwear brand has launched Kidset, a Kith kids line located in New York at 64 Bleecker Street. The line includes mini versions of staple Kith pieces like the Astor bomber jacket and the Kith box logo sweatshirts, along with a wall that can display up to 120 pairs of shoes from @adidas, @newbalance, @timberland and more. #wwdfashion
“I just wanted to create this fully rounded character, but I do think what excited me most was just the opportunity to give a group of people representation that I feel needs it. I like to do characters in projects that stand for something and Karolina definitely does, so that was really exciting to me,” @ginnygardner says of her new role in @hulu’s “The Runaways.” Gardner plays Karolina Dean, a queer superhero, which is a rarity for @marvel. Read more about Gardner’s character on WWD.com #wwdeye (📷: @dandoperalski)