The Business of Fashion
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MILAN, Italy — More than 50 percent of Yoox Net-a-Porter's sales in 2017 came through mobile devices for the first time, according to a statement of the group's 2017 preliminary results. The fashion e-commerce leader surpassed €2 billion (about $2.6 billion) in net revenues, up nearly 12 percent year-over-year.
The growth is on par with YNAP's 2016 sales increases (up 12 percent year-over-year). The company's full 2017 results will be revealed in March, after which its progress in light of increased competition from rivals like Farfetch and MatchesFashion will be more clear. Since the formation of the group with the merger of Yoox and Net-a-Porter in 2015, YNAP has been the undisputed leader in the fast growing luxury e-commerce market, which is expected to explode from about 8 percent to 25 percent of total luxury sales by 2025. But competitors across all three parts of YNAP's business — in-season, off price and e-commerce solutions for brands — are growing their market share.
YNAP’s record mobile growth was led by its off-price site Yoox, which had the highest mobile penetration due in large part to its dedicated app and several new marketing campaigns. All of the group’s sites registered 842 million online visitors, up from 716 million in 2016, and 9.5 million orders, up from 8.4 million in 2016, from 3.1 million active customers. The average order value decreased to 328 euros (about $402) from 334 euros (about $410) in 2016.
Net-a-Porter and Mr Porter, YNAP’s full price multi-brand retailers, accounted for almost 52 percent of sales at 1.1 billion euros (about $1.3 billion), up nearly 12 percent year-over-year. The company said the launch of Mr P, Mr Porter’s private label, in November was one of the “most successful brand launches” in its history.
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"We've had a very good year," said chief executive Federico Marchetti in a statement. "Performance in the fourth quarter was strong across the business. Net-a-Porter, Mr Porter and Yoox did particularly well. The Outnet's revenues were affected for a short period by the migration of its logistics centres. This is behind us now and product availability has been fully restored."
Despite the setbacks at The Outnet, YNAP's off-price division (which includes The Outnet and Yoox) grew about 13 percent in 2017 to about 790 million euros (about $970 million) and 38 percent of the total group sales. Meanwhile digital flagships, which YNAP powers for brands such as Armani, Isabel Marant and Chloe, accounted for about 10 percent.
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