For the first time since the merger, the Yoox Net-a-porter Group released pro-forma revenues for the year 2015, which show that all business channels and all markets lifted the e-tailer’s performance last year.
In the 12 months ended Dec. 31, pro-forma revenues rose 30.9 percent to 1.7 billion euros, or $1.8 billion, compared with 1.3 billion euros, or $1.7 billion, in 2014. At constant exchange rates, sales were up 21 percent.
All business lines contributed to the growth. The multibrand, in-season channel posted a 36.9 percent gain in pro-forma revenues, while the multibrand off-season division saw sales climb 26.1 percent. The monobrand channel at gross merchandise value was up 27.5 percent.
CEO Federico Marchetti said “2015 was an exciting and transformational year that brought together two exceptional companies to create the world’s leading online luxury fashion retailer.” Marchetti highlighted mobile transactions, defined as “key” to the group’s success and contributing almost 40 percent of the group’s sales, boosted by native apps, which surged 180 percent. “With our integration activities in full swing and on track, we are confident we will continue to deliver robust growth and gain market share. I would like to thank our whole team for their dedication and hard work in building the future. We are now one company, which will achieve the unthinkable.”
In 2015, the multibrand In-Season business line, which includes online stores Net-a-porter, Mr Porter, Thecorner and Shoescribe, registered pro-forma revenues of 893.3 million euros, or $991.5 million, up 36.9 percent from the previous year.
The company touted the “excellent performance” of the Net-a-porter and Mr Porter’s sites, which last year offered debuts of Tom Ford, Tod’s and Brunello Cucinelli ready-to-wear collections. In addition, Pomellato and exclusive capsule collections such as Portofino by Dolce & Gabbana, Cashmere Trench by Burberry London and the Sun and Ski Capsules by Chloé were launched on Net-a-porter, while Mr. Porter introduced Moncler and Brioni and a new sports area. In May, the group launched The Net Set, pegged to be the first fully shoppable social shopping network.
The group highlighted its first combined advertising campaign for Net-a-porter and Mr Porter launched in November last year for Christmas, which “achieved significantly higher-than-expected results in terms of sales and visits to the dedicated holiday areas.” It also underscored the positive performance of the bimonthly print magazine Porter, which has “exceeded expectations” and is distributed in more than 60 countries.
Last year, average monthly unique visitors totaled 27.1 million compared to 23.6 million in 2014 and the group registered 7.1 million orders, compared to 5.8 million in 2014.
As of Dec. 31, the multibrand in-season business line accounted for 53.7 percent of pro-forma revenues. The multibrand off-season business line recorded pro-forma revenues of 596.4 million euros, or $662 million, up 26.1 percent from the previous year, accounting for 35.8 percent of the total.
New brands, such as Proenza Schouler and Oscar de la Renta, and a new Travel area also contributed to the performance.
YNAP also designs and manages online stores for companies ranging from Giorgio Armani to Ermenegildo Zegna and this channel last year totaled sales of 175.3 million euros, or $194.6 million, up 19.2 percent from the previous year, while the pro-forma gross merchandise value was up 27.5 percent. During 2015, the group launched the new online flagships of Lanvin and McQ in Europe, the U.S. and in the Asia-Pacific region, including China, and the Karl Lagerfeld online flagship in Europe, the U.S. and Japan. In July 2015, the Red Valentino online flagship was extended to China. The channel accounted for 10.5 percent of total pro-forma revenues with 40 online flagship stores.
By geography, the company grew in all its key markets and the merger helped increase brand awareness for Net-a-porter in Italy and for Yoox in the U.K. Sales in Italy were up 19.7 percent to 110.9 million euros, or $123 million. Revenues in the U.K. gained 37.3 percent to 263.9 million euros, or $293 million. The rest of Europe was up 17 percent, lifted in particular by France, Germany, Spain and Russia.
Sales in North America climbed 43.3 percent and in the Asia-Pacific region revenues jumped up 36.9 percent. The main countries that contributed to the group’s results in the region were Hong Kong, China, Australia and Japan.
The Rest of the World area registered growth of 25.7 percent.
Dollar figures are converted at average exchange rates for the periods they refer to.
The group addressed its new structure following the merger. Effective Feb. 1, the customer-facing divisions have been arranged into three separate business lines, reporting to Marchetti. Alison Loehnis, who has worked with the Net-a-porter Group since 2007, has been promoted to president in-season, in charge of leading Net-a-porter, Mr Porter and the Porter magazine.
Luca Martines, former president of Yoox.com, has been promoted to president Off-Season, in charge of both the Yoox and The Outnet e-stores.
Paolo Mascio, who has been responsible for the monobrand division since 2009, is now president of Online Flagship Stores.
COO Alberto Grignolo, who has been with the Yoox team for 15 years, will be heading the shared services unit, a newly formed division encompassing technology, operations, sourcing center for own label and market development, including China and Japan. Alex Alexander, who joined Grignolo’s team from Wal-Mart Global eCommerce last June as chief information officer of the Yoox Group, was promoted to the same role for YNAP , playing “a pivotal role,” said the company, in unifying the London and Bologna teams. William Duffy was promoted to senior director of global operations of YNAP to lead the integration and future expansion of the group’s global logistics platform. Corporate functions continue to be headed by Enrico Cavatorta, chief financial and corporate officer.