According to Richemont’s consolidated income statement, for the year ended March 31 Net booked a loss of 2 million euros, or $2.5 million, in the 2014-’15 fiscal year, compared with a loss of 12 million euros, or $16.1 million, in the previous 12-month period.
All figures have been converted at average exchange rates for the periods to which they refer.
Richemont, which released its year-end financial results on Friday, said Net’s sales were up 30 percent at historic rates, and 22 percent at constant rates in the past year, while EBIT, or earnings before interest and taxes, was 1 million euros, or $1.27 million. The company’s cash flow was 16 million euros, or $20.3 million euros.
The merger, which is set to be finalized in September, will give Net’s parent Richemont a 50 percent stake in Yoox Net-A-Porter Group, and 25 percent of the company’s voting rights. The new Yoox Net-a-Porter Group will be quoted on the Milan bourse.
Net’s founder Natalie Massenet will be executive chairman of the combined group with defined responsibilities, while Yoox founder officer Federico Marchetti will be chief executive officer.
Richard Lepeu and Gary Saage, co-chief executive officer and chief financial officer of Richemont, respectively, have been named to the board of directors.
Richemont and Yoox Group announced the merger on March 31 and said the new retail brand, Yoox Net-a-Porter, would have combined net revenues of 1.3 billion euros, or $1.45 billion at current exchange.
The new group will be built on three pillars: in-season and off-season fashion, and the management of online, monobrand fashion stores.