Yoox Net-A-Porter’s revenue uptick spurs profit growth

YNAP full year

Yoox Net-a-Porter Group’s surge in full-year revenues allowed it to record an uptick in annual profits across all of its markets, including the UK despite the devaluation of the pound against the euro.

YNAP’s UK net revenue increased 13.7 per cent to €286.8 million (£257.1 million) on a reported basis in its financial year ending December 31.

On a reported basis, due to the fluctuating sterling, net revenue in the country grew 6.3 per cent.

Meanwhile in YNAP’s fourth quarter, UK net revenues grew eight per cent to €84.5 million (£75.7 million) on a reported basis, or an increase of 10.3 per cent at constant exchange rates.

As revealed in its preliminary report in January, YNAP’s overall full-year net revenues topped €2 billion for the first time, rising 16.9 per cent on an organic basis to €2.1 billion (£1.86 billion).

This was driven by a strong fourth quarter where sales increased by 13.2 per cent on an organic basis to €575.1 million (£510.2 million).

However, operating profit dropped by 11.8 per cent on a reported basis to €46 million (£41.2 million).

In addition, net income was €17.3 million (£15.5 million) compared to €33.9 million in the previous year, due to an increase in net financial expenses following exchange rate losses.

Despite this, full year adjusted EBITDA rose 9.2 per cent on a reported basis to €169.2 million (£151.6 million) last year from €155.7 million in 2016, after factoring in €12.8 million (£11.4 million) in non-cash costs relating to its share-based incentive plan.

Meanwhile, YNAP’s gross profit spiked by 10 per cent to €806 million (£722.6 million).

During the year YNAP improved its mobile offering with a strong focus on native apps, a tool for conversion, and customer engagement and retention.

This allowed 2017 mobile sales to exceed 50 per cent of the group’s sales for the first time.

Visitor numbers were also boosted by a strong fourth quarter, with traffic towards the end of the year rising 24.5 per cent, pushing full year visitors up 17.7 per cent to 842.2 million.

Although the number of orders in 2017 increased from 8.4 million to 9.5 million, YNAP was hit by unfavourable exchange rates seeing average order values fall to €328 (£294), down 1.7 per cent.

“The YNAP team’s hard work in 2017 built a business that is bigger and stronger than ever before,” YNAP chief executive Federico Marchetti said.

“Our significant investments in technology and logistics ensure that the group will continue to thrive and remain the world’s leading online luxury destination.”

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