The Yoox Net-A-Porter group this week updated investors on the progress of a multichannel strategy that focuses on online luxury through in-season and off-season websites, as well as flagship websites for third party retailers, as it published half-year results. The retail group reached €1bn in revenue for the first time in a half-year, as net revenues rose by 19.5% in the six months to June 30, compared to the same time last year, while adjusted earnings before interest, tax and asset write-downs came in at €98m, 28% ahead of last time.
Federico Marchetti, group chief executive, said: "In the first half we achieved outstanding results with revenues of over €1bn thanks to organic growth of more than 20% in the second quarter.
"This remarkable performance reflects our success in leveraging on strong company cultures to build one group and one team. Thank you to the 4,315 talents who share the same ambition and collaborative spirit, bringing their best to our customers every day.
"We just hit another important milestone in our integration plan, with the launch of the first online flagship store on our new state-of-the-art technology. This enables us to deliver far greater personalisation through artificial intelligence and smart data.
"Continuous innovation, backed by relentless execution, are what keeps YNAP the world's leading online luxury fashion retailer.”
Here's what the group, which includes Net-A-Porter , a Top150 retailer in IRUK Top500 research
, and Yoox.com , a Top350 retailer, had to say about its multichannel strategy.
The fastest growth came in its online flagship stores, which saw gross merchandise value climb by 22.6% compared to the same time last year, while off-season net revenues at Yoox and The Outnet rose by 22.6%, and in-season net revenues at Net-A-Porter and Mr Porter rose by 19.5%. In season websites remain the largest part of the business, however, accounting for 53.5% of all sales. Off-season sales stood at 36.9% of revenues and online flagship stores at 9.6%.
Sales rose as visitors, orders and order values all rose significantly compared to the previous year. The group reported 394m website visits, up from 342.7m at the same time last year, 4.5m orders (3.9m last time) and an average order value of €345 (€335 last time).
Most sales came via mobile devices for the first time, with this channel enjoying more than 50% of net sales in the year-to-date by July, thanks to a focus on improving the mobile user experience. In the second quarter, for example, Mr Porter added new content functionality to its native app, while Yoox released a new iOS and Android version of its native app. So far the Yoox app has seen a higher conversion rate and improved text search capabilities.
During the first half, the group launched the first online flagship store, for Moncler, on its new technology platform. It has also signed a multi-year agreement to run the Ferrari online flagship store.
The Anglo-Italian group said that its fastest growing markets in the first half were in the Asia Pacific and North America regions.
Operations & logistics
The group has introduced one shared technology and logistics platform, and during the half-year it rolled out omnichannel services to more flagship partner stores.
The retailer has invested in a new tech hub in London
as it works towards "accelerating innovation and delivering best-in-class technologies including artificial capabilities," and it has also invested in its operations, with a new in-season logistics hub opened in Milan.