Results

Italian online fashion retailer YOOX Net-a-Porter Group reported net revenue growth of 12.4% year over year on a reported basis and 17.7% year over year at constant exchange rates. Revenues of €1,871 million were slightly below the consensus estimate of €1,890 million.

Net Revenues by Business Line

Multibrand in-season product sales climbed by 16.0% year over year on an organic basis, while multibrand off-season sales jumped by 19.5% and online flagship store sales increased by 23.7%. More than 51.8% of the company’s revenue was derived from the multibrand in-season business. Including sales of TheCorner.com and ShoeScribe.com, which were discontinued at the end of August 2016, FY16 sales grew by 13.0% year over year at constant exchange rates. FY16 sales growth was driven by a strong performance across all geographic regions. At constant exchange rates, Asia-Pacific sales increased by 27.1% year over year, while UK sales grew by 15.3%, Europe sales by 13.2%, North America sales by 14% and Rest of the World sales by 16.5%. About 37.2% of the company’s revenues were derived from the multibrand off-season business, including sales from Yoox.com and TheOutnet.com. The online flagship store monobrand business accounted for 11.0% of the group’s consolidated net sales. The division’s strong sales performance was driven by a joint venture with Kering.

Key Performance Indicators

The average number of monthly unique visitors across the company’s sites rose by 7.9% year over year in FY16, to 28.8 million, and orders increased by 18.3% year over year, to 8.4 million. The average order value excluding VAT was €334, down 5.1% from €352 in FY15, mainly reflecting unfavorable exchange rate movements. The number of active customers increased by 16% year over year, to 2.9 million at the end of FY16.

4Q16 Results

Revenues in 4Q16 were €538.2 million, up 15.7% year over year on an organic basis. For 4Q16, multibrand in-season product sales increased by 17.6% year over year on an organic basis, while multibrand off-season sales grew by 16.3% and online flagship store sales increased by 34.6%.

Outlook

The company will report detailed FY16 results on March 1, 2017. Analysts expect the company to generate FY16 EBIT of €95.7 million and normalized EPS of €0.50 in FY16. The estimates imply FY16 EBIT growth of 37.7% and EPS growth of 8.7% year over year.