MILAN — Buoyed by the opening of seven new online stores and positive performances from both its Multi-marca and Mono-marca divisions, Italian e-tailer Yoox Group posted net profits of 9.1 million euros, or $12 million, – a 122.5 percent leap compared with the same period last year.
As reported in February, sales for the year gained 40.8 percent to 214.3 million euros, or $282.8 million at average exchange, while earnings before interest, taxes, depreciation and amortization (EBITDA) grew 25 percent to 18.8 million euros, or $24.8 million. Dollar figures are converted at average exchange rates for the periods to which they refer.
Yoox’s Multi-Marca division – which includes the company’s two main multibrand Web sites, Yoox.com and Thecorner.com and accounted for 76.4 percent of sales in 2010 – saw a sales increase of 31.8 percent to 163.7 million euros, or $216 million, compared to the previous year.
In the fourth quarter, net profits came in at 5.1 million euros, or $6.7 million, up significantly from the same period in 2009, when the figures were affected by nonrecurring costs associated with the group’s initial public offering, which occurred that December.
At a press conference held here Wednesday, chairman and founder Federico Marchetti mapped out the next several years for the growing online retailer, underlining the importance and thus far successful two-pronged focus on technology and logistics. Indeed, Marchetti revealed plans to invest about 20 million euros, or $27.8 million at current exchange, in a project that will in essence, automate the company’s Bologna, Italy-based warehouses by year’s end – with robotics and all.
Geographically, Italy remains Yoox’ largest market in terms of revenues, bringing in 23 percent of total sales at 49.2 million euros, or $64.9 million, although the objective is for the U.S., which currently makes up 19.7 percent of sales, to top the list by year’s end. Figures were up in all other areas of the world as well.
Regarding the company’s ongoing global expansion, Marchetti said Yoox would focus on China for the time being as it shows strong potential with almost 300 million Internet users, 80 percent of them under the age of 45, according to data from Forrester Research, Inc. Yoox recently opened offices in Shanghai from which it operates China-dedicated online stores for Emporio Armani and Marni, which opened in November and March, respectively, while a new site for Bally is set to go live there within the first semester.
Yoox currently operates 25 different online stores throughout the world and plans to open five to six more a year with the goal of bringing the total to at least 50 by 2015. Marchetti added that the group’s two multibrand sites will carry a wider selection of full priced current collection pieces with the objective that in-season merchandise will account for half of total revenues by 2015.