In its last earnings report before its expected merger with Net-A-Porter, Yoox reports good results for web sales overall and a stellar performance from North America.

All in the first half of 2015 was a good one financially for Italian apparel and web-only merchant Yoox Spa. But it was North America that delivered the best results.

For the period ended June 30, which is the last earnings Yoox is expected to report as a stand-alone company prior to its merger with The Net-A-Porter Group Ltd., No. 31 in the Internet Retailer 2015 Europe 500, Yoox reported:

  • Total revenue for the first half of the year increased year over year 19.6% to 284.6 million euro ($311.7 million) from 238 million euro ($260.7 million). Total revenue for the direct e-commerce sites operated by Yoox, what the company calls its multibrand business, increased 18.9% to 206.8 million euro ($226.5 million) from 173.9 million euro ($190.5 million) in the first half of 2014.
  • Total revenue for its commercial e-commerce services business, which Yoox calls its mono-brand business, increased 22.7% to 101.6 million euro ($111.3 million) from 82.8 million euro ($90.7 million) in the first half of 2014.
  • Web sales for Europe excluding Italy increased year over year 11.9% to 127.2 million euro ($139.7 million) from 113.7 million euro ($124.4 million).

Web sales for Italy increased year over year 13.4% to 43.9 million euro ($48.1 million) from 38.7 million euro ($42.4 million).

North American web sales grew year over year 40.7% to 70.5 million euro ($77.63 million) from 50.1 million euro ($55.17 million).

  • Japanese web sales grew year over year 8.2% to 19.9 million euro ($21.8 million) from 18.4 million euro ($20.2 million).
  • Traffic from monthly unique visitors increased 26.4% to 17.7 million from 14 million.
  • Total orders grew 5.9% to 1.8 million from 1.7 million.
  • Average ticket was 204 euros ($224) compared with 200 euros ($219) in the first half of 2014

In March Yoox, No. 72 in the Europe 500  moved to acquire online luxury fashion retailer Net-A-Porter in a stock deal valued at about 719 million euros ($775 million) from luxury goods maker and retailer Cie. Financiere Richemont SA. The deal is expected to be finalized by the end of September. The boards of directors of both companies approved the transaction in April.

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Part of the expense of the merger already is showing up in the lasting financial earnings for Yoox. The company posted a loss of 100,000 euros ($109,500) compared with net income of 2.6 million euros ($2.8 million) in the first half of 2014 because of pre-merger integration costs, the company says. Yoox also posted a loss 1.1 million euros ($1.2 million) in the second quarter compared with a profit of 1.6 million euros ($1.8 million) in the second quarter of 2014. In comparison, total sales for the second quarter increased 23.2% to 137.3 million euros ($150.4 million).  

The merger would create a 1.30 billion euro ($1.40 billion) company. The transaction, if approved by shareholders and regulators, will create the Yoox Net-A-Porter Group, a global online luxury fashion retailer with 2014 adjusted earnings before interest, taxes, depreciation and amortization—a common accounting distinction—of about 108 million euros ($116 million).

The merger is expected to deliver 60 million euros ($64.4 million) in annual EBITDA and capital expenditure savings by the third full year following completion, Yoox says. Approximately half that total is expected from revenue and the remainder from cost and capital spending savings. The combined companies will benefit from a single technology platform that will connect e-commerce sites and distribution centers with a goal of “one virtual global inventory,” Yoox says. “This is expected to deliver additional sales, improved sell-through and retail margin by exposing the combined group’s offering to a wider audience worldwide.”

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