Italian online fashion retailer Yoox Net-A-Porter says it will meet its full-year revenue goal thanks to accelerating sales in April-May after a 14.5 percent rise at constant currencies in the first quarter. The newly formed group, a combination of Italian e-commerce site, Yoox, and upmarket rival Net-A-Porter, which has its own multi-brand shopping websites but also operates online stores for luxury brands including Armani and Valentino, reported an increase in sales of almost 14 percent in the first three months of the year. This is a sharp slowdown from last year, when the online seller of Gucci handbags and Jimmy Choo shoes was growing more than twice quickly.
According to the report, the group, which said it had renewed its partnership with Italian fashion house Armani for another 10 years and would continue to manage the online flagship store Armani.com, is vulnerable to a weakening British pound due to Net-A-Porter’s large UK business. However, according to Chief Financial and Corporate Officer Enrico Cavatorta, “We’re fully confident regarding our total year guidance of achieving a high-teens sales growth … at constant forex … seeing that April and May are (moving) in that direction.”
According to WSJ, “The company’s off-season sites, such as The Outnet and Yoox.com, which sell apparel at a steep discount to the original sticker price, posted sales growth of 20 percent. But consumers proved less willing to pay full price for luxury items from the world’s preeminent fashion houses.”
Yoox Net-A-Porter’s first-quarter sales totaled 446 million euros ($510 million), just below an average analyst estimate by Thomson Reuters of 453 million euros. The group is taking advantage of new rules that allow companies to publish a full set of earnings only twice a year.