Yoox Confirms 2013 Guidance as Mobile Boosts Quarterly Sales
Yoox Group (YOOX), the operator of e-commerce stores for brands from Armani to Zegna, maintained its outlook for full-year revenue and earnings growth after investments in mobile technology helped boost quarterly sales.
Third-quarter revenue rose to 111.8 million euros ($151.1 million) from 93.2 million euros a year earlier, Bologna, Italy-based Yoox said today in a statement after markets closed. Citigroup Inc. analysts estimated sales of 111 million euros.
Yoox, which said last month it’s looking at acquisitions, is winning orders as consumers search for deals online and increasingly shop for clothing and accessories via phones and tablets. The online luxury market will more than double to 15 billion euros by 2016, Forrester Research Inc. (FORR) estimates.
“We are in good form going into the Christmas period,” Chief Executive Officer Federico Marchetti said in a phone interview. It is “reasonable to assume” that sales and earnings will increase in 2013, Yoox said in the statement.
Excluding currency shifts, third-quarter sales advanced 25 percent, the company said. Adjusted earnings before interest, taxes, depreciation and amortization climbed 23 percent to 8.8 million euros, beating Citigroup’s estimate of 8.5 million euros. The adjusted figure excludes incentive plan costs.
The quarterly performance was “robust,” said Exane BNP Paribas analyst Simon Bowler, who has an outperform rating on the stock. “The longer-term opportunity remains unchanged. Short-term we continue to expect trends to improve further as revenue headwinds fade and tailwinds emerge.”
Yoox shares, which have more than doubled this year, rose 0.2 percent to 27.45 euros today in Milan, giving the company a market value of about 1.6 billion euros.
Sales in North America, the company’s biggest market, advanced 42 percent, accelerating from the first half’s 23 percent gain. In Italy, where the contribution to sales from mobile devices is higher than in the rest of the world, revenue advanced 16 percent, Yoox said.
All key performance indicators improved in the first nine months of the year, Yoox said. As of Sept. 30, the company had 200,000 more monthly average visitors than a year ago, 300,000 more orders and an average order value of 213 euros, up from 200 euros a year earlier.
Yoox designs and manages online stores for more than 30 fashion and luxury-goods brands. The company, which last year set up an e-commerce venture with Gucci-owner Kering SA, (KER) also sells third-party products via the yoox.com, thecorner.com and shoescribe.com Web stores.
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