May 12, 2016
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Yoox Net-A-Porter says seeing stronger sales after Q1 15 pct rise

May 12, 2016

Twelve Italian online fashion retailer Yoox Net-A-Porter says it will meet its full-year revenue goal thanks to accelerating sales in April-May after a 14.5 percent rise at constant currencies in the first quarter.


It also said it had renewed its partnership with Italian fashion house Armani for another 10 years and would continue to manage the online flagship store Armani.com.

The group, born from the merger of Italy's Yoox with upmarket rival Net-A-Porter, targets a high-teens digit rise in sales this year stripping out the impact of currency moves.

YNAP has its own multi-brand shopping websites but also operates online stores for luxury brands including Armani and Valentino.

It is vulnerable to a weakening British pound due to Net-A-Porter's large UK business. Sales rose 13.8 percent in the first quarter at current exchange rates.

"We're fully confident regarding our total year guidance of achieving a high-teens sales growth ... at constant forex ... seeing that April and May are (moving) in that direction," Chief Financial and Corporate Officer Enrico Cavatorta told an analyst call.

He also confirmed a forecast for an improved core profit margin this year.

YNAP's first-quarter sales totalled 446 million euros ($510 million), just below an average analyst estimate by Thomson Reuters of 453 million euros.

The group is taking advantage of new rules that allow companies to publish a full set of earnings only twice a year.

Sales at YNAP's off-season business rose 20percent in the first three months of the year.

In that period, its higher-end in-season business posted a slower 11 percent rise in sales but Cavatorta said those lines were now leading the improvement in the second quarter.

The group processed 2 million orders in the period, up from 1.7 million in January-March 2015. The average order value was 324 euros compared to 334 euros then. Active clients rose to 2.5 million from 2.2 million.

$1 = 0.8788 euros

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