Yoox Expects Profitability to Increase in 2012

Yoox SpA (YOOX) Chief Executive Officer Federico Marchetti said he expects profit margins at the online fashion retailer to widen in 2012 as the company reaps the benefit of investment in mobile commerce and logistics.

“2012 will be the year in which Yoox gathers the fruit, also in terms of profitability,” Marchetti, who founded the Bologna, Italy-based company in 2000 and is also its chairman, said in a Feb. 13 telephone interview. “I feel very confident about 2012 in terms of the top line.”

Yoox climbed 8.6 percent, the most in more than eight months, in Milan trading on Feb. 9 after reporting a 36 percent increase in 2011 revenue that exceeded analysts’ estimates. North America replaced Italy as the company’s largest source of revenue, accounting for about 21 percent of the 291.2 million- euro ($383 million) total. Yoox reports 2011 profit on March 7.

Sales growth will continue in Italy in 2012, “but the majority of the growth will come from international markets, above all the U.S.,” where demand is “very positive” so far this year, Marchetti said. Yoox’s partnership with Conde Nast Publications, which allows readers of the New York-based publisher’s flagship title Vogue to buy goods via Yoox’s multi- brand store, www.thecorner.com, is aiding growth, he said.

Revenue growth from so-called mono-brand websites such as www.zegna.com and www.armani.com will continue to outpace multi- brand sales as Yoox opens five or six e-commerce stores for other brands this year, Marchetti said. The retailer will also introduce www.yoox.com to China towards the end of 2012 and “we cannot exclude opening” more multi-brand stores, the CEO said, without specifying when or where.

To contact the reporter on this story: Andrew Roberts in Paris at aroberts36@bloomberg.net

To contact the editor responsible for this story: Sara Marley at smarley1@bloomberg.net

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