Yoox Surges as Web Retailer Beats Estimates
Yoox SpA (YOOX) surged the most in more than eight months in Milan trading as 2011 revenue at the online seller of fashion and luxury goods beat estimates.
The stock rose as much as 11 percent to 10.34 euros as of 10:35 a.m. local time before being halted. That’s the biggest increase since May 26. Yoox shares have more than doubled since an initial offering in 2009, giving the distributor of brands including Diesel and Valentino a market value of 563.1 million euros ($748.6 million).
“We continue to believe Yoox is strategically positioned at the confluence of two long-term structural growth trends: the expansion of Internet retail and the growth in sales of luxury goods due to rising global wealth levels,” Karen Hooi, an analyst at Goldman Sachs Group Inc., wrote in a note today. Yoox is on Goldman’s “conviction buy” list.
Revenue rose 36 percent to 291.2 million euros last year, according to preliminary results released by the Bologna-based company yesterday. Analysts had expected sales of 284.5 million euros, according to Bloomberg estimates. The company said that North America has become its largest market.
CA Cheuvreux increased its recommendation on the stock to “outperform” from “underperform,” citing better-than- expected sales in the fourth quarter, with Italy and Europe “nearly keeping pace with the third quarter and accelerating elsewhere.” The brokerage said the “strong top line might help margins.”
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