1 hour ago | By Sandra Halliday
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Online luxury retailer Yoox Net-A-Porter Group has raised its estimate for annual cost savings as it reported its first quarterly earnings since the two companies merged.
Synergies are expected to reach €85m by 2018, Yoox Net-a-Porter, compared with prior estimates of €60m.
The combined company plans to share its global inventory virtually to connect all its online stores and geographical markets. It will improve product sourcing and lower delivery and warehousing costs by optimising geographical allocation of stock to bring it closer to the customer.
It is looking to maximise cross-selling and up-selling opportunities across the Net-a-Porter and Yoox customer bases, as well as saving on marketing spend.
The comments came as Yoox third-quarter EBITDA grew by 12.5% to €10.4m, as gross profit margin declined on higher fulfilment and sales and marketing costs. Revenue increased by 20.7% over the period to reach €154.8m.
Adjusted net income over the nine-month period fell to €4.4m compared to €5.3m in the same period of the prior year. Consolidated net revenue grew 20% to €439.4m.
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