MILAN — Yoox Group SpA said Thursday that adjusted net profits surged 38.3 percent to 4.4 million euros, or $4.8 million, in the first six months of the year, lifted by gains in all its markets worldwide and currency tailwinds. The figure does not include the noncash costs relating to existing share-based incentive plans, the nonrecurring items related to the merger with Net-a-porter, net of their related tax effect. Earnings stood at 100,000 euros, or $109,000 after nonrecurring costs of 5.2 million euros, or $5.7 million, related to the merger, and 1 million euros, or $1.1 million, of noncash incentive plan costs. This compares with 3.2 million euros, or $3.5 million, in the same period last year.
Revenues rose 19.6 percent to 284.6 million euros, or $311.2 million, compared with 238 million euros, or $260 million last year.
“In line with the strategy defined at the beginning of the year, Yoox delivered a marked acceleration in net revenue growth in the second quarter of 2015, confirming its position as a high-growth company,” said founder and chief executive officer Federico Marchetti. In the second quarter, revenues grew 23.2 percent. “We are reaping the rewards of all the efforts of Yoox’s people who continue to work together with dedication and passion.”
During a conference call with analysts, Marchetti underscored the acceleration in the second quarter, driven by the performance in Europe and Asia and foreign exchange tailwinds.
New chief financial and corporate officer Enrico Cavatorta also said that tailwinds were “beyond expectations.” He said he expected these will “continue to have a positive effect but to a lesser extent, a few percentage points less” in the rest of the year.
During the call, Marchetti also referred to preparations in light of the merger with Net-a-porter, which will be effective in October. Related costs are expected to total between 15 million and 20 million euros, or $16.4 million and $21.9 million, by the end of the year, ranging from legal and accounting to consulting fees. Corporate development and financial communications director Silvia Scagnelli said the company is “not wasting time,” on preparing the merger, having set up an integration office, and fueling communication with its employees, with “frequent updates” on an internal Web site. Scagnelli said Yoox is working with Boston Consulting Group and, while declining to provide additional details, described the preparation with the expression: “So far so good, with no surprises.”
Remarking on the merger, Marchetti said he had met with the “top management team” in New York and London. “I have never seen so many talents under one roof, I am superpositive.”
In the first half, earnings before interest, taxes, depreciation and amortization excluding incentive plan costs totaled 19.2 million euros, or $ 20.1 million, up 2.6 percent compared to last year.
The multibrand business line, which includes Yoox.com, Thecorner.com and Shoescribe.com, grew 18.9 percent to 206.8 million euros, or $226 million.
In the second quarter, revenues accelerated, climbing 22.7 percent driven by Yoox.com, which benefited from new marketing and commercial initiatives implemented during the period. In particular, marking the 15th anniversary of Yoox, a new TV campaign was launched in Italy and later, for the first time, also in the U.S. With the aim of further enriching Yoox.com, a new Travel area was launched in May. At the end of June, the multibrand business line accounted for 72.7 percent of sales.
The monobrand division, with 38 online flagships, ranging from Giorgio Armani to Ermenegildo Zegna, grew 21.3 percent to 77.8 million euros, or $85 million, accounting for 27.3 percent of total
The figures reflected “the brilliant results” of the joint venture with Kering and of most of the division’s brand portfolio, and the effect of the strong appreciation of the dollar against the euro, said Marchetti.
North America, the group’s biggest market, saw revenues spike 40.6 percent to 70.5 million euros, or $77.1 million. At constant exchange, sales grew 15.1 percent.
Sales in Italy were up 13.4 percent, totaling 43.9 million euros, or $48 million.
Europe was up 11.9 percent and Russia benefitted from the gradual improvement of the euro/ruble.
Japan grew 8 percent and other countries surged 67 percent thanks to the excellent results of Yoox.com in China and Hong Kong.
Scagnelli said “China is performing extremely well,” with a “nearly triple-digit growth, and offers huge potential. There are opportunities, even more so as a combined group.”
To further develop its global techno-logistics platform, capital expenditures totaled 25.5 million euros, or $27.9 million, compared with 17.2 million euros, or $18.8 million, in the same period of the previous year.
The group also continued with the rollout of cross-channel functionalities for its monobrand partners, and two new services were introduced: “Buy On Call,” which enables customers to buy over the phone, and “Click For Fashion Advice,” to receive style advice.
As of June 30, the group’s net debt stood at 8.5 million euros , or $9.3 million, compared to a positive net financial position of 31 million euros, or $33.9 million, at the end of December 2014.
“In light of the proven effectiveness of the Yoox business model worldwide and the positive outlook for the online luxury retail market, it is reasonable to expect that the Yoox group will continue to see business growth in 2015,” said the company.