Yoox reported a net profit of €3.5 million in the first nine months of the year to Sept. 30, up from €3.4 million in the same period last year, boosted by gains globally and, in particular, by a third-quarter acceleration in the U.S., its number-one market. The Italian market also performed well, posting a double-digit sales increase in the period despite a difficult economic environment. Total revenues in the nine months increased by 20 percent to €319.3 million as compared to the same period a year earlier.
The Italian internet retailer said that profits were impacted by an increase of €4.6 million in depreciation and amortization related to investment in its global e-commerce platform and exchange-rate losses and interest expenses. Excluding non-cash costs relating to existing incentive plans and the related tax effect, net profit totaled €6.4 million, up 13.4 percent from the end of September last year.
The multibrand business line, which includes Yoox.com, Thecorner.com and Shoescribe.com, posted sales of €230 million, up 23.5 percent, and accounted for 72 percent of the group's total sales. The monobrand business posted sales of €89.3 million, up 11.8 percent from the year before. It sets up and manages online stores for fashion and luxury goods brands such as Armani, Roberto Cavalli and Ermenegildo Zegna, and accounted for 28 percent of sales, with 36 online stores.
Sales in North America registered a 29.5 percent increase to €73 million, with a marked acceleration in the third quarter, when sales grew 41.7 percent as compared to the previous year. Italy achieved 15.1 percent growth to €47.5 million despite the lackluster economy, driven by sales from smartphones and tablets and growing customer loyalty, with revenues in the third quarter climbing 16.1 percent to €16 million. The rest of Europe gained 19.2 percent in the first nine months, lifted mainly by France, Germany, the U.K. and Russia. Japan grew by 11.8 percent despite the sharp depreciation of the yen during the nine-month period. Other countries posted a 51.2 percent increase.
The company said that the final quarter of the year is going to be in line with the top-line growth acceleration from both the multibrand and monobrand business lines. The multibrand channel is expected to outperform the monobrand channel again in the fourth quarter. The group expects to continue to invest in technology, earmarking a total of €100 million for the 2013-15 period.