MILAN — The Yoox Net-a-porter Group reached another milestone last year, reporting 2017 preliminary sales of 2.1 billion euros. This was an 11.8 percent increase compared with revenues of 1.87 billion euros in 2016. On an organic basis, sales were up 16.9 percent.
Full financial results for last year will be reported on March 6.
In the 12 months ended Dec. 31, the luxury e-tailer saw growth across all its main markets and business channels. Its multibrand, in-season division was up 18.3 percent; the multibrand off-season channel grew 14.9 percent, and the gross merchandise value of online flagship stores rose 20.8 percent.
Revenues in the fourth quarter climbed 6.9 percent, or 13.2 percent organically, to 575.1 million euros, compared to 538.2 million euros in the fourth quarter of 2016, impacted by a one-off effect due to temporary lower product availability on The Outnet as a result of the migration to new logistics centers.
“We’ve had a very good year. Performance in the fourth quarter was strong across the business,” said chief executive officer Federico Marchetti. “Net-a-porter, Mr Porter and Yoox did particularly well. The Outnet’s revenues were affected for a short period by the migration of its logistics centers. This is behind us now and product availability has been fully restored. I would like to thank the entire YNAP team for its hard work during the year.”
In 2017, the group drew 842 million visits, compared with 715 million in 2016, and the fourth quarter’s performance was highlighted as visits were up 24.5 percent, “reflecting outstanding traffic growth registered at Yoox, thanks to its new branding campaign,” said the company. It reported the figures on Monday after the end of trading in Milan, where YNAP is publicly listed.
In 2017, for the first time, sales from mobile exceeded 50 percent of the group’s revenues. In particular, Yoox achieved the highest mobile penetration and reached an all-time-high share of mobile sales at 96 percent during Cyber Monday, driven by the store’s native app. The Net-a-porter native app also achieved “excellent results” in 2017, and reported the highest number of visits per user, the company said.
In 2017, the multibrand, in-season business line, which includes Net-a-porter and Mr Porter, recorded sales of 1.1 billion euros, up 18.3 percent on an organic basis, and represented 51.8 percent of total revenues. Including the performance of Thecorner and Shoescribe, which were discontinued on August 31, the in-season business line grew 11.9 percent.
In the fourth quarter the channel was up 12 percent to 295.1 million euros. Net-a-porter and Mr Porter in the year added brands including Alaïa, Cartier, Boucheron, Tag Heuer and the Mr Porter x Gucci capsule, to name a few. Mr P., Mr Porter’s own label, bowed in the last quarter and “is showing strong customer traction and sales results,” and is “one of the most successful brand launches” on Mr Porter, said the company.
In 2017, the multibrand, off-season business line, which includes Yoox and The Outnet, recorded sales of 789.6 million euros, a 13.3 percent rise compared with 2016. This channel accounted for 37.8 percent of total sales. In the fourth quarter, sales of the division grew 1.9 percent to 204.4 million euros, driven by Yoox, but this was partially offset by the one-off effect due of the temporary lower product availability on The Outnet, which affected the U.K. and North America in particular.
Versace and Sergio Rossi debuted on the Yoox store in the fourth quarter, while Altuzarra and Tabitha Simmons were added to The Outnet. Yoox also benefited from the beginning of the joint venture with Alabbar in the Middle East in the fourth quarter.
The group’s online flagship stores business line, which includes the design, setup and management of stores for designer brands from Giorgio Armani to Valentino, was up 5.9 percent to 217.5 million euros, representing 10.4 percent of the total.
In the fourth quarter, revenues of that division grew 1.9 percent to 75.7 million euros.
Last year, YNAP and Valentino partnered to unveil in 2018 Next Era, which will allow the brand to offer enhanced delivery services and an unprecedented online product assortment, creating a “single view of inventory.”
By geography, sales in the U.K. grew 6.2 percent to 286.8 million euros, affected by the devaluation of the euro, compared with the pound. At constant exchange, revenues were up 13.7 percent. In the fourth quarter, sales grew 8 percent to 84.5 million euros.
Revenues in North America, the group’s main market, gained 10.2 percent to 632.2 million euros, also impacted by the devaluation of the euro. At constant exchange, sales grew 12.8 percent. In the fourth-quarter, North America’s revenues dropped 1 percent, but grew 7.6 percent at constant currency to 171.1 million euros from 172.9 million euros in 2016.
Italy grew 14.2 percent last year to 142.6 million euros. In the fourth quarter, sales gained 17.7 percent to 44 million euros. This growth was mainly driven by Yoox, which benefited from branding and marketing campaigns launched ahead of the holiday season.
In the year, sales in Europe, excluding Italy and the U.K., grew 12.4 percent to 548.6 million euros. In the fourth quarter, revenues climbed 9.4 percent to 147 million euros.
Sales in 2017 in Asia-Pacific rose 17.7 percent to 355.8 million euros, and they were up 8 percent in the fourth quarter, reaching 95.1 million euros, driven by a strong performance of Yoox in Hong Kong, which benefited from a successful branding campaign launched in October in the region.
The Rest of the World area posted a 12 percent growth to 125.1 million euros, benefiting from a 22.5 percent increase in sales in the fourth quarter, “underpinned by excellent results posted” by Yoox following the start of trading of the joint venture with Alabbar, said the company.