Net-A-Porter narrows yearly loss | RetailDetail

Net-A-Porter narrows yearly loss

Net-A-Porter narrows yearly loss

British luxury online retailer Net-A-Porter has managed to lower its losses by 4.8 million euro last fiscal year compared to the year before. Both the turnover and profit margin improved, but the company faces an increasingly competitive market.

Red numbers

Net-A-Porter, property of Swiss luxury group Richemont, ended its fiscal year 2012-2013 with a loss of 28 million euro. A year before, the e-tailer had to take a loss of nearly 32.5 million euro. Last year the company managed to sell more clothes at full price, resulting in an 18 % turnover increase to 522 million euro. Its profit margin also grew from 41.2 % to 45.6 %.

 

The company is feeling the heat of competitors though: not only aretraditional fashion retailers catching up quickly on the internet, new online luxury competitors are also pressuring the British brand. "The group is countering this competitive risk by regularly adding new designers, by enhancing its technology offering and online experience to its customers”, the London-based company says.

 

Net-A-Porter, allegedly attracting 2.5 million visitors per month, has opened offices in New York, Shanghai and Hong Kong these past few years. It has also opened a new logistics centre, also in Hong Kong, with French, German and Chinese web shops this past March.

 

 

 

(translated by Gary Peeters)

Questions or comments? Please feel free to contact the editors


Analysis: six reasons major brands are under pressure

17/05/2018

Global brands are increasingly struggling to ward off smaller, local companies. Some even believe the brands’ golden age has passed. That may be presumptuous, but there are some noticeable trends.

Coca-Cola is still strongest global brands, but local brands are on the rise

17/05/2018

Coca-Cola, Colgate and Maggi are the most popular FMCG brands worldwide, according to a Kantar Worldpanel report. Local brands are stealing market share however.

HelloFresh increases turnover forecast

14/05/2018

Mealbox delivery service HelloFresh has increased its 2018 forecast: the German company now expects a 35 % growth, up from its previous 30 % increase forecast. Positive results in the United States, which has become the company’s main market, were the main reason for its adjustment.

Brussels bio chain Färm keeps expanding

14/05/2018

Färm, a bio store chain from Brussels, is supporting a planned expansion with a crowd funding campaign. The chain aims to open its biggest store so far in the North of the European capital, extending its services with a bakery in the store. 

More profit from smaller volumes for AB InBev

09/05/2018

Despite AB InBev’s beer sales dropping 0.2 % in the first quarter, the Belgian-Brazilian beer giant did generate a turnover increase and a gross profit above expectations.

Ahold Delhaize mainly grows online

09/05/2018

Belgian-Dutch merger group Ahold Delhaize has had a decent first quarter, thanks to a Belgian turnaround, a good performance in the United States and strong online growth. Unfavourable exchange rates did spoil the party somewhat.