The world’s leading online retailer of luxury goods reported solid growth in the third quarter and the launch of a new private-label apparel line.
One of the items in the new Mr P line of men’s apparel from YNAP brand Mr Porter
Yoox-Net-A-Porter Group, ranked No. 1 in Internet Retailer’s annual survey of the world’s leading retailers of luxury goods, said revenue grew 10.7% in the quarter to 481.8 million euros ($558.7 million) from 435.4 million euros ($504.9 million).
The company, No. 20 in the Internet Retailer 2017 Europe 500, said Wednesday that the increase would have been 17.7% if not for discontinued operations and the fall in value of the dollar against the euro, the currency of record for the Anglo-Italian web-only retailer. The weak dollar meant sales in the United States, the company’s largest market, produced fewer euros in revenue.
The company, often referred to by its stock symbol YNAP, this week announced the launch of a private-label brand of men’s apparel, Mr P, by its Mr Porter brand. The e-retailer described the line as “meanswear essentials” and said, “The Mr P range of everyday timeless favorites will be complemented by five limited-edition trend and seasonal-driven capsules every year, aimed at satisfying the customer appetite for ‘buy now, wear now.’”
The Mr P line is available exclusively at MrPorter.com. Among the items are a black double-breasted cotton-corduroy blazer for $505 and worsted wool pants for $225.
Mr Porter and women’s apparel Net-A-Porter make up what YNAP calls its multi-brand in-season business, which accounted for 52% of the company’s revenue in the third quarter. For the first nine months of the year, that group’s net revenue increased 18.8% on a constant-currency basis and 11.9% in euros.
The Multi-Brand Off-Season business unit, consisting of Yoox and The Outnet, grew 17.4% in the third quarter when factoring out currency fluctuations and 14.4% in euros. For the first nine months, the unit’s revenue increased 18.3% on a constant-currency basis and 17.9% in euros.
Yoox, which sells out-of-season fashion apparel at discounted prices, last month launched a marketing campaign across TV, radio, movie theaters and out-of-home advertising in Italy, Hong Kong and Japan. That ad campaign is due to launch this month in the United States.
The Online Flagship Stores unit, which operates e-commerce sites for such luxury brands as Armani, Dunhill, Lanvin and Chloe, increased Q3 revenue by 14.4%, 17.4% on a constant-currency basis. Nine-month growth was 9.9%, or 21.5% when factoring out currency fluctuations. That unit accounted for 9.4% of YNAP’s revenue in the quarter.
The retailer reported that visits to its site increased to 586.5 million for the first nine months of the year from 510.1 million a year earlier, while orders increased to 6.8 million from 5.9 million and active customers to 3.1 million from 2.8 million. Average order value slipped slightly to 330 euros ($383) from 331 euros ($384).
For the first nine months of the year, YNAP’s revenue totaled 1.5 billion euros ($1.74 billion), an increase of about 15% from 1.3 billion euros ($1.51 billion).
YNAP projected growth for the full year at the lower end of its previous 17-20% forecast and said investments in technology and logistics would total 170 million euros ($197 million) for the year.
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