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.
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)