YNAP FY17 revenues grow 16.9 percent

Full-year net revenues of 2.1 billion euros (2.6 billion dollars) at Yoox Net-A-Porter Group, were up 16.9 percent on an organic basis and 11.8 percent reported compared to 2016. The company saw positive organic growth across all three business lines with multi-brand in-season net revenues up 18.3 percent; multibrand off-season net revenues up 14.9 percent and gross merchandise value of online flagship stores up 20.8 percent. For 2018, the company expects to achieve organic net revenue growth in line with its strategic plan. The group also expects to deliver an improvement in the adjusted EBITDA margin at constant exchange rates.

Commenting on the group’s performance, Federico Marchetti, Chief Executive Officer of Yoox Net-A-Porter Group said in a statement: “Our significant investments in technology and logistics ensure that the group will continue to thrive. Looking ahead, we are excited about the growth opportunity in the Gulf region, as the joint venture with Mohamed Alabbar kicks in this year. We look forward to launching the online flagship stores for Ferrari and Balmain and to scaling up the Next Era capabilities for Valentino.”

YNAP reports positive growth across business lines

In full year 2017, the multi-brand in-season business line, which includes Net-A-Porter and Mr Porter, recorded consolidated net revenues of 1.1 billion euros (1.3 billion dollars), up 18.3 percent on an organic basis. Including the performance of TheCorner and Shoescribe, which were discontinued on August 31, 2016, the company said, the in-season business line grew 15.8 percent or 11.9 percent reported at constant exchange rates in 2017. In the fourth quarter, net revenues totalled 295.1 million euros (366 million dollars), up 16.8 percent at constant exchange and 12 percent reported.

In 2017, the multi-brand off-season business line, which includes Yoox and The Outnet, registered consolidated net revenues of 789.6 million euros (980 million dollars), up 14.9 percent at constant exchange and 13.3 percent reported. Fourth-quarter consolidated net revenues were 204.4 million euros (253.8 million dollars), up 6.6 percent at constant exchange and 1.9 percent reported. This result was driven by a strong performance achieved by Yoox, partially offset by the one-off effect due to a temporary lower product availability on The Outnet upon migration.

The online flagship stores business line includes the design, set-up and management of the online flagship stores of some of the leading global luxury fashion brands, including Armani.com and Chloe.com. In 2017, this business line recorded gross merchandise value growth of 20.8 percent on an organic basis. Taking into account the negative net perimeter effect resulting from discontinuations, the business line achieved consolidated net revenues of 217.5 million euros (270 million dollars), up 8.5 percent at constant exchange and 5.9 percent reported. In the fourth quarter, GMV growth was 22.1 percent on an organic basis and consolidated net revenues were 75.7 million euros (94 million dollars), up 5.9 percent at constant exchange and 1.9 percent reported.

YNAP grows revenues across core markets

The company recorded positive growth across all of its key markets in 2017 despite the one-off effect due to temporary lower product availability on The Outnet upon migration, which impacted all regions, and particularly the UK and North America. UK ended 2017 with net revenues of 286.8 million euros (356 million dollars), up 13.7 percent at constant exchange and 6.2 percent reported, due to the devaluation of the euro/sterling exchange rate. In the fourth quarter, UK net revenues totalled 84.5 million euros (104.9 million dollars), up 10.3 percent at constant exchange and 8 percent reported.

North America posted full-year net revenues of 632.2 million euros (785 million dollars), up 12.8 percent on a constant currency and 10.2 percent reported, reflecting the devaluation of the euro/US dollar. In the fourth-quarter, North America’s net revenues totalled 171.1 million euros (212.5 million dollars), up 7.6 percent on a constant currency basis, declining 1 percent reported.

Italy posted full-year net revenues of 142.6 million euros (177 million dollars), up 14.3 percent at constant exchange and 14.2 percent reported from 2016. In the fourth quarter, net revenues were up 17.7 percent at constant and current exchange rates to 44 million euros (54.6 million dollars). For the year, total net revenues in Europe excluding Italy and the UK were 548.6 million euros (681 million dollars), up 12 percent at constant exchange and 12.4 percent reported. In the fourth quarter, net revenues totalled 147 million euros (182.5 million dollars), up 11.2 percent at constant exchange and 9.4 percent reported.

Full-year net revenues in Asia Pacific totalled 355.8 million euros (441.9 million dollars), up 22.2 percent at constant exchange and 17.7 percent reported. In the fourth-quarter net revenues were 95.1 million euros (118 million dollars), up 14.2 percent at constant exchange and 8 percent reported, driven by Yoox’s strong performance in Hong Kong. Finally, rest of the world recorded net revenues of 125.1 million euros (155 million dollars), up 18.2 percent at constant exchange and 12 percent reported in 2017. This result benefited from a 23.5 percent or 22.5 percent reported net revenue growth in the fourth quarter, underpinned by results posted by Yoox following the start of trading of the JV with Alabbar.

Full year EBITDA up 8.7 percent

In 2017, adjusted EBITDA came in at 169.2 million euros up 8.7 percent against 2016, with an adjusted EBITDA margin at 8.1 percent compared with 8.3 percent in 2016. The company added that after 12.8 million euros (15.9 million dollars) of non-cash costs relating to share-based incentive plans, EBITDA amounted to 156.5 million euros (194 million dollars) compared with 143.4 million euros (178 million dollars) in 2016, with a margin at 7.5 percent.

In 2017, adjusted net income amounted to 51.2 million euros (63.5 million dollars) compared with 69.3 million euros (86 million dollars) in the previous year, with a margin at 2.4 percent. After 24.5 million of non-cash amortisation related to the Purchase Price Allocation (PPA) arising from the merger and 9.9 million of non-cash costs relating to share-based incentive plans, both net of their related tax effects, net income stood at 17.3 million euros (21 million dollars) in 2017, compared with 33.9 million euros (42 million dollars) in 2016.

Picture credit:YNAP