Yoox Net-A-Porter (YNAP) reported sales of €481.8 million for the third quarter of 2017, up by 10.7 percent from the same quarter of 2016. In local currencies, organic sales increased by 17.7 percent. The growth was driven by positive performance in all key markets, with marked acceleration in the U.K. and the rest of Europe.
The multi-brand in-season business line, which includes Net-A-Porter and Mr Porter, recorded revenues of €235.9 million, up by 16.8 percent on an organic basis. Including The Corner and Shoescribe, which were discontinued on Aug. 31, 2016 and have changed ownership recently (see the news brief in this issue), this business line grew by 15.5 percent at constant exchange rates and by 9.7 percent on a reported basis. As at Sept. 30, the multi-brand in-season business line accounted for 52 percent of the group's consolidated revenues.
The multi-brand off-season business line, which comprises Yoox and The Outnet, posted revenues of €203.6 million, up by 17.4 percent at constant exchange rates and by 14.4 percent on a reported basis. As at Sept. 30, the multi-brand off-season business accounted for 38.6 percent of the group's consolidated revenues.
In the online flagship store business line, the gross merchandise value increased by 24.8 percent on an organic basis. After accounting for discontinuations, the business posted revenues of €42.3 million, up by 4.8 percent at constant exchange rates, and down by 0.1 percent on a reported basis. This business line includes the design, set-up and management of the online flagship stores of some of global luxury fashion brands, including armani.com and chloe.com.
Geographicaly, the U.K. achieved revenues of €63.8 million, representing a 20.1 percent increase at constant exchange rates and 13 percent in euros, due to the depreciation of the euro/sterling exchange rate. This marks an acceleration against the second quarter of 11.7 percent at constant exchange rates, driven by the group's multi-brand online stores. North America posted revenues of €138.6 million, up by 10.3 percent at constant exchange rates and 4.3 percent on a reported basis, reflecting the sharp depreciation of the euro against the U.S. dollar.
Italy posted revenue increases of 14.2 percent at constant exchange rates and 14.1 percent on a reported basis, with revenues in the third quarter of 2017 reaching €34.1 million. In Asia-Pacific, revenues totaled €82.2 million, and were up by 14 percent at constant exchange rates or 7.1 percent on a reported basis. Growth in this region mainly reflected continued positive momentum in Hong Kong. Finally, revenues in the rest of the world were €28.5 million, up by 24.9 percent at constant exchange rates and 18.1 percent on a reported basis.
Based on the results achieved in the first nine months of the year and the expected performance in November and December, YNAP expects to post organic revenue growth at the lower end of the 17 percent to 20 percent range for the year, in line with its strategic plan. The group also expects to increase adjusted Ebitda, with a margin on revenues broadly in line with the previous year.
YNAP has been launching a series of deals and initiatives for holiday season shopping, starting with the Cyber Weekend at the end of November. During the four-day-long shopping weekend, YNAP offered special events and services as an extra incentive for consumers. Among other initiatives, YNAP targeted its wealthiest customers with a series of exclusive seasonal events across key markets globally. On Net-A-Porter, for instance, a preview for EIPs (Extremely Important People) offered priority access to new products to the highest-spending shoppers. Also, in the U.K., Net-A-Porter and Mr Porter organized an invitation-only two-day pop-up Gift Shop experience in London for EIPs, with pieces from trendy designers on display, followed by a party for VIPs, celebrities and influencers.