Luxury fashion web shop Yoox Net-A-Porter expects an annual turnover increase of 17 to 20 % until 2020. Among other things, its very own label should help spur growth.
Several growth areas
Yoox Net-A-Porter was created last year when Italian Yoox purchased French Net-a-Porter, with 50 % of shares belonging to luxury group Richemont. The merger company aims to grow faster than the online luxury market and significantly faster than the global luxury market, which only has a 2 to 3 % growth forecast.
CEO Frederico Marchetti is counting on a continuous international expansion, with the Far East as a target area. New technologies have to entice the mobile shopper, with increased focus on personal marketing. Finally, the company also wants to expand its portfolio to include watches, jewelry and its own fashion label and collection. The latter should contribute 10 % of turnover by 2020.
Increase profitability
However, this turnover increase cannot damage the company’s profitability. The goal is to have a 11 to 13 % profit margin over the next few years, compared to the 8 % it managed last year.
Starting in 2018, the company should also have a positive cashflow, with a rather limited Brexit effect according to Marchetti, despite a sixth of turnover coming from the area. The CEO feels the effects will be minimal because the company has both costs and income in pounds, offsetting each other.
