YNAP has record year as revenues surge, prepares Balenciaga collab
2017 was a good year for Yoox Net-A-Porter as the high-end-outlet-to-ultra-luxury e-tailer turned in a record sales performance. It saw organic net revenues rising 16.9% on a currency-neutral basis, or 11.8% as reported, to hit a massive €2.1 billion.
The year also ended on a high note with a strong Q4 and its luxe Net-A-Porter operation reporting that sales of fine jewellery and eveningwear powered ahead.
The company is upbeat about the year ahead too with it set to operate the Ferrari Online Flagship Store from June, while Net-A-Porter and Mr Porter will launch exclusive Balenciaga capsule collections this month. In a first for the firm, the campaign for this has been shot using YNAP staff at the London office. And it’s also the first time Balenciaga has collaborated on dual women’s and men’s exclusive collections with a retail partner since creative director Demna Gvasalia took over.
But that’s the near future. Looking back, exactly how strong was the year and quarter just gone?
The group said it saw “positive growth across all three business lines and good growth in all our key regions,” as well as over 840 million visits to its websites and 9.5 million orders during the year.
Q4 was particularly strong, with visits up by 24.5% reflecting “outstanding traffic growth at Yoox,” thanks to its new branding campaign. That said, Q4’s net revenues may have risen 13.2% in constant currencies, but on a reported basis they were up only 6.9% to €575.1 million, a rate that lagged the year’s overall growth as exchange rates made an impact.
Also important in 2017, for the first year, sales from mobile exceeded 50% of total sales and within the group, Yoox itself achieved the highest mobile penetration with an all-time-high share of mobile sales at 96% during Cyber Monday. But the Net-A-Porter native app also achieved “excellent results over the year and reported the highest number of visits per user,” the company said.
IN-SEASON AND OFF-PRICE
The Multi-brand In-Season business unit, which includes the luxury Net-A-Porter and Mr Porter websites, saw consolidated net revenues up 18.3% currency-neutral to €1.1 billion (with the ‘reported' figure being less of a guide as it includes the discontinued The Corner and Shoescribe ops.) For Q4 though, the unit grew 12% reported and 16.8% currency-neutral to €295.1 million.
The two sites certainly had a dynamic year with some major brand coups. Alaïa chose Net-A-Porter as its RTW e-tail partner and the exclusive Mr Porter x Gucci capsule collection launched. The last quarter also saw the debut of the own label Mr P, “which is showing strong customer traction and sales results” and “has been one of the most successful brand launches” on the site.
And in Q4, the personal shopping service “You try, we wait”, dedicated to its higher-value customer base, was rolled out to New York and Hong Kong, capitalising on the successful launch in London earlier in the year.
At year-end, the business unit accounted for 51.8% of the group’s consolidated net revenues.
When it comes to off-price, the Multi-brand Off-Season business line (Yoox and The Outnet), which makes up 37.8% of total group sales, saw consolidated net revenues of €789.6 million for the year. That was up 14.9% at constant exchange rates, or 13.3% reported. Q4 rose 6.6% currency-neutral and by 1.9% reported to €698 million, driven by a strong performance at Yoox but partially offset by one-off product availability issues at The Outnet.
Meanwhile the firm’s Online Flagship Stores business line, which runs e-stores for names such as Armani, Valentino, Isabel Marant and Marni, saw gross merchandise value (GMV) growth of 20.8% on an organic basis for the year. Taking into account “the negative effect resulting from discontinuations,” the unit achieved consolidated net revenues of €217.5 million, up 8.5% at constant exchange rates, or 5.9% reported.
GMV grew 22.1% currency-neutral in Q4 while consolidated net revenues of €75.7 million reflected a rise of 5.9% at constant exchange rates or 1.9% reported.
Looking at the group as a whole, UK net revenues rose 13.7% currency-neutral and 6.2% reported to €286.8 million for the year, while Q4 rose 8% reported and 10.3% currency-neutral.
North America, the group’s top market, posted full-year net revenues of €632.2 million, up 12.8% on a currency-neutral basis, or 10.2% reported. Meanwhile Q4 was up 7.6% currency-neutral to €171.1 million, but down 1% reported, as exchange rates took their toll.
Italian revenues rose over 14% for the year to €142.6 million and 17.7% to €44 million for Q4, while other European markets were up 12% currency-neutral and 12.4% reported for the year to €548.6 million. They rose 11.2% currency-neutral and 9.4% reported to €147 million for Q4.
Full-year net revenues in Asia Pacific totalled €355.8 million, up 22.2% at constant exchange rates, or 17.7% reported. In Q4, net revenues were up 14.2% currency-neutral to €95.1 million and 8% reported, driven by Yoox’s strong performance in Hong Kong, which benefitted from a successful branding campaign.
And for the Rest of the World, revenues of €125.1 million were up 18.2% at constant exchange rates or 12% reported. The figures were boosted by a 23.5% currency-neutral net revenue growth in Q4 (or 22.5% reported), underpinned by excellent results posted by Yoox following the start of its joint venture with Alabbar.
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