Yoox Stock Jumps on E-Commerce Prospects to Push EarningsAndrew Roberts
Yoox Group, an operator of e-commerce stores for clothing brands from Armani to Zegna, rose to an eight-week high after forecasting revenue and profit gains following fourth-quarter earnings that beat estimates.
Yoox jumped as much as 6.6 percent to 32.55 euros, the highest intraday price since Jan. 10, and was trading up 4.8 percent at 32 euros as of 12:48 p.m. in Milan, valuing the company at about 1.9 billion euros ($2.6 billion).
Quarterly earnings before interest, tax, depreciation and amortization gained 33 percent from a year earlier to 21.6 million euros, the Bologna, Italy-based online retailer said late yesterday in a statement. Analysts predicted earnings of 20.6 million euros. All divisions will contribute to the increases in sales and profit this year, Yoox said.
Yoox is winning orders as consumers search for deals online and increasingly shop for clothing and accessories via smartphones and tablets. Revenue rose 24 percent to 136.3 million euros in the period, boosted by demand in Europe, while Ebitda benefited from more efficient sales and marketing investments and lower costs related to employee stock-incentive plans, Yoox said.
“Healthy business trends are set to continue, including new agreements in monobrand,” or e-commerce sites operated on behalf of retailers, “and the strength of the yoox.com” multibrand website, Marco Baccaglio, an analyst at Kepler Cheuvreux with a reduce recommendation on the stock, said today in a report to clients.
Yoox designs and manages online stores for more than 30 fashion and luxury-goods brands. The company, which operates an e-commerce venture with Gucci owner Kering SA, also sells third-party products via thecorner.com and shoescribe.com multibrand websites.
“It is reasonable to expect that the Yoox group will continue to see growth in sales and profits in 2014,” it said.