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LONDON, United Kingdom — Online luxury retailer Yoox Net-a-Porter SpA raised its estimate for annual cost savings as it reported its first quarterly earnings since the merger that created the company.
Synergies will reach 85 million euros ($91 million) by 2018, Milan-based Yoox Net-a-Porter said Wednesday after European markets closed. That compares with a previous estimate of 60 million euros. Nine-month adjusted net income rose 50 percent to 32.4 million euros on a so-called pro forma basis, the company said.
The new forecast underscores the advantages of scale in Web retailing of luxury goods. Yoox agreed in March to merge with Cie. Financiere Richemont SA's Net-a-Porter to create the world's largest online vendor of Gucci handbags and Chloé dresses. Net-a-Porter founder Natalie Massenet, who was set to be executive chairman, quit in September.
Chief Executive Officer Federico Marchetti said last month he anticipates more consolidation in the industry. Brands are joining department stores and publishers in offering designer clothing online, seeking to capture sales which brokerage Sanford C. Bernstein predicts will grow at more than twice the pace of the overall luxury market through 2019.
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“We are just at the beginning of making our vision a truly exciting reality,” Marchetti said in the statement. The CEO’s stake in the company will rise to 6.1 percent from 5.7 percent after the exercise of options over 2.39 million shares, most of which will be sold to cover related costs.
By Andrew Roberts; editors: Matthew Boyle, Paul Jarvis.
