MILAN — Boosted by gains globally and, in particular, by a third-quarter acceleration in its number-one market, the U.S., Yoox SpA reported net profits in the first nine months of the year of 3.5 million euros, or $4.6 million, up 3.6 percent compared with 3.4 million euros, or $4.3 million, in the same period last year.
Revenues in the period to Sept. 30 rose 20 percent to 319.3 million euros, or $418.3 million, compared with 266.1 million euros, or $340.6 million, in the same period the year before.
Yoox said profits were impacted by an increase of 4.6 million euros, or $6 million, in depreciation and amortization related to investment in its global e-commerce platform and exchange-rate losses and interest expenses. Stripping out noncash costs relating to existing incentive plans and the related tax effect, net profit totaled 6.4 million euros, or $8.4 million, climbing 13.4 percent from 5.6 million euros, or $7.2 million, at the end of September last year.
Founder and chief executive officer Federico Marchetti said the company continues “to invest in technological innovation: Yoox is now a leader in mobile commerce and ranks in the top 10 e-tailers worldwide. For over a year we have also been investing in cross-channel capabilities to empower our luxury brand partners to offer their customers a fully integrated and seamless experience between their physical flagship stores and their virtual monobrand online store powered by Yoox.”
The group expects to further invest in technology, and has earmarked a total of 100 million euros, or $131 million, for the 2013-15 period.
Dollar amounts have been converted at average exchange for the periods to which they refer.
Marchetti pointed to the growth in the group’s top markets, the U.S. and Italy, in the third quarter, and said “the EBITDA margin also improved, for the fifth consecutive quarter, confirming the effectiveness of our marketing and commercial strategies, as well as the ever-increasing performance and appeal of our online stores.”
The multibrand business line, which includes Yoox.com, Thecorner.com and Shoescribe.com, posted sales of 230 million euros, or $301.3 million, showing a 23.5 percent gain, and accounting for 72 percent of the group’s total sales.
The monobrand business posted sales of 89.3 million euros, or $117 million, up 11.8 percent from the year before. As of Sept. 30, the monobrand business, which sets up and manages online stores for leading global fashion and luxury goods brands from Armani to Roberto Cavalli and Ermenegildo Zegna, accounted for 28 percent of sales, with 36 online stores.
Sales in North America rose 29.5 percent to 73 million euros, or $95.6 million. The third quarter showed a marked acceleration with sales growing 41.7 percent ahead of the previous year.
Despite the lackluster economy, Italy recorded what Yoox described as an “excellent” performance for four consecutive quarters, driven by sales from smartphones and tablets and growing customer loyalty. In the first nine months of 2013, the domestic market achieved growth of 15.1 percent ahead of the previous year, reaching sales of 47.5 million euros, or $62.2 million. In particular, in the third quarter, revenues climbed 16.1 percent to 16 million euros, or $21 million.
The Rest of Europe gained 19.2 percent in the first nine months, lifted mainly by France, Germany, the U.K. and Russia. Japan also grew 11.8 percent despite the sharp depreciation of the yen over the period. At constant exchange rates, the region was up 40.2 percent.
Other countries grew 51.2 percent.
Silvia Scagnelli, investor relations and financial communications director, said during the call that “the final quarter is in line with the top-line growth acceleration from both business lines — multibrand and monobrand.” In addition, she said the multibrand channel is expected to outperform the monobrand in the fourth quarter.
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