MILAN — Italian online retailer Yoox Group closed 2012 with gains in profitability and sales, boosted by growth in all markets and at both its monobrand designer stores and its multibrand channel.
In the 12 months ended Dec. 31, net profit rose 1.8 percent to 10.2 million euros, or $13 million, compared with 10 million euros, or $13.9 million, in 2011, despite higher financial expenses and a 72 percent increase in depreciation and amortization attributed mainly to investments in innovation and technology, and the automation of the central operations and distribution platform.
Revenues grew 29.1 percent to 375.9 million euros, or $481.1 million, compared with 291.2 million euros, or $404.7 million the year before, with an acceleration in the fourth quarter. In that period, sales increased 26.6 percent to 109.8 million euros, or $141.6 million.
Federico Marchetti, Yoox founder and chief executive officer, credited the group’s “outstanding team” for the year’s strong results, noting that “new talents” will strengthen the company to ensure continued growth. “I therefore believe that 2013 can be another successful year, during which we must continue to focus on the impeccable execution of projects currently ongoing with all of our partners and to focus even more on our customers, with the goal of always providing them with the best possible shopping experience on all channels,” said Marchetti.
Earnings before interest, taxes, depreciation and amortization rose 33.2 percent to 32.1 million euros, or $41 million, “reflecting the [14.8 percent] increase in the average order value and the strong operating leverage on fulfillment costs,” the company said.
Dollar amounts have been converted at average exchange for the periods to which they refer.
The multibrand business, which includes Yoox.com, Thecorner.com and Shoescribe.com, saw a 23.1 percent increase in revenues, which reached 262 million euros, or $335.3 million, and accounted for 69.7 percent of total sales. A Chinese version of Yoox.com was launched in the fourth quarter.
The monobrand business registered revenues of 113.9 million euros, or $145.8 million, up 45.3 percent. With 33 online stores, this channel accounted for 30.3 percent of total sales. Yoox manages online stores for groups including Giorgio Armani, Marni, Valentino and Ermenegildo Zegna.
The online stores of Barbara Bui, Pringle of Scotland, Pomellato and Alexander Wang were launched during the year. In the first half of 2013, the group will unveil Missoni’s online store. The launch of the Sergio Rossi online store, as well as the pre-opening of the Bottega Veneta and Stella McCartney online stores took place at the end of 2012, as part of the joint venture with PPR. All digital stores under this agreement will launch by the end of 2013.
Revenues grew globally and North America remained the group’s top market, with sales of 81.5 million euros, or $104.3 million, representing 21.7 percent of total revenues, and climbing 36.5 percent. In the fourth quarter, revenues were up 29.1 percent, accelerating from the previous quarter, even though the performance was influenced by Hurricane Sandy in the early part of the period.
Despite the lackluster economy, revenues in Italy were up 2.4 percent in the year. The rest of Europe gained 27.3 percent, driven by France, Germany, the U.K. and Russia. Japan grew 56.8 percent and the “other countries” area was up 139.7 percent, driven by China.
Capital expenditures totaled 30.3 million euros, or $38.8 million, in 2012 as the group continued to invest in the new highly automated global operations and distribution platform.
In 2012, despite these capital expenses, strong operating cash flow and efficient working capital management helped improve the group’s net financial position, which was positive, standing at 14.6 million euros, or $18.7 million, as of Dec. 31 2012, compared with 12.9 million euros, or $18 million, at the end of Dec. 2011.
“In light of the positive performance of online retail, the proven effectiveness of the Yoox business model and its technological and logistical leadership, it is reasonable to expect that the group will continue to increase revenues and profits in 2013, boosted by both business lines and all key markets,” said the company.
In 2013, Yoox also intends to strengthen its market positioning in Italy and Europe, and to seize growth opportunities in North America, which is expected to remain its leading market.