Yoox reported consolidated net revenues of €238.0 million for the first half ended June 30, up 14.7 percent, or 18.7 percent at constant exchange rates, from the first half of 2013. The Italian-based internet retailing platform recorded growth in all its key markets, including a rise of more than 20 percent in Italy. Net income rose 15.9 percent to €2.6 million, despite a €2.8 million increase in depreciation and amortization due to the higher investments made by the group in the last three years for technological innovation, higher financial charges relating to unrealized exchange rate losses and interest expenses, as well as a higher tax burden as a percentage of sales. Net income excluding non-cash costs relating to existing incentive plans and the related tax effect came in at €3.2 million.
The global internet retailer also posted a positive performance in the second quarter with net revenues of €111.5 million, up by14.9 percent, or 17.7 percent at constant exchange rates, from the second quarter of 2013. Growth in the quarter was mostly driven by the acceleration in Italy and the multi-brand business line. Net income of €1.6 million compared with €1.1 million in the second quarter of 2013.
Earnings before interest, taxes, depreciation, and amortization (Ebitda) rose by 31.7 percent to €17.9 million in the first half of the year, resulting in a 7.5 percent margin, up from 6.5 percent in the first half of 2013, thanks to strong operating leverage on all cost lines and lower non-cash costs relating to existing incentive plans which together more than offset the gross margin performance affected by the unfavorable exchange rate movements. The Ebitda margin in the second quarter was 8.8 percent, up from 7.8 percent in the same period of the previous year.
In the first six months, the group recorded a monthly average of 14.0 million unique visitors, which translated into 1.5 million orders, an increase of 22.3 percent from the same period of the previous year. The average order value excluding VAT came in at €200, or €207 at constant exchange rates. The number of active customers increased to 1.2 million as of June 30, 2014, compared with one million as of June 30, 2013.
The multi-brand business line, which includes yoox.com, thecorner.com and shoescribe.com, posted consolidated net revenues of €173.9 million in the first half, up 16.9 percent, or 21.5 percent at constant exchange rates. As of June 30, 2014, the this business accounted for 73.1 percent of the group's consolidated revenues. The second quarter marked an acceleration on the first three months of the year, with consolidated net revenues of €82.8 million for this business line, up 18.6 percent, or 21.8 percent at constant exchange rates, with positive performance for all three online stores. Starting from the summer, yoox.com has introduced the sunglasses category into its offer.
Yoox' mono-brand business line posted consolidated net revenues of €64.1 million in the first half, up by 9.3 percent or 11.7 percent at constant exchange rates. This segment includes the design, set-up and management of the online stores of 38 global fashion and luxury brands. In the second quarter, net revenues for this business line came in at €28.7 million, up 5.2 percent, or 7.0 percent at constant exchange rates. On May 15, kartell.com “Powered by Yoox Group,” for which the group's creative agency designed and developed the concept, was launched in Europe. Additionally, the Sergio Rossi online store was extended to the Chinese market at the end of June.
In Italy, Yoox' sales grew 22.9 percent to €38.7 million. The domestic market achieved good results also in the second quarter, with turnover up by 26.6 percent compared with the same period of the previous year, marking a sharp acceleration on the first three months of 2014. Sales in Italy continued to benefit from the rising contribution of smartphones and tablets, which were 18 percent higher than in the rest of the world.
In the rest of Europe, sales grew 14.8 percent, or 18.3 percent at constant exchange rates, in the first half of 2014 and 14.2 percent, or 15.9 percent at constant exchange rates, in the second quarter. The second quarter showed balanced growth across France, Germany, the U.K. and Russia, the four main countries that contribute to the group's revenues in Europe.
North America posted growth of 8.8 percent, or 13.5 percent at constant exchange rates, in the first half of the year and 9.1 percent, or 14.5 percent at constant exchange rates, in the second quarter. Japan recorded growth of 5.8 percent, or 18.4 percent at constant exchange rates, compared with the first six months of 2013. Second-quarter results in Japan were in line with the same period of 2013 at current exchange rates, while growing by 6.9 percent at constant exchange rates.
The results in other countries were also very positive, with revenues up 21.4 percent in the first half, or 25.2 percent at constant exchange rates, driven by China, which grew strongly during the period. The performance in China benefited from the introduction on yoox.cn of a new logistic set-up, complementary to the locally available system. This enabled Yoox to extend its offer, while at the same time limiting investments in local inventories. Since mid-February, Chinese customers can access not only the local offering available in the Shanghai logistics center, but also the global range of brands based in Italy.
Yoox expects sales and profits to continue to grow in 2014, with both business lines and all the group's key markets contributing to this growth. Investments in innovation and consolidation of Yoox' global techno-logistic platform will continue. In particular, the group plans to release cross-channel features that will enhance its proposition to mono-brand partners, allowing them to provide their customers with a fully integrated experience between their physical stores and the virtual stores “powered by Yoox Group”.