MILAN Nov 7 Online fashion retailer Yoox
is expecting higher sales and profitability by the end
of this year after an improved domestic market helped boost
profits in the third-quarter.
Yoox, which powers sites for top brands such as Valentino
and Giorgio Armani alongside its own multibrand websites, has
heavily invested in its logistics to better serve shoppers in
fast-growing markets and offset weaker demand in Europe.
Investments eroded profitability in the first half of the
year but net profits grew 72.7 percent to 1.2 million euros in
the three months to September, broadly in line with analyst
Net profits had fallen 25.6 percent to 2.2 million euros in
the first half compared to the same period of 2011.
Sales in Italy returned positive in the third quarter after
falling in the previous months, indicating improved consumer
confidence in the recession-hit country especially among younger
Yoox said it expected revenues and profitability to improve
in the fourth quarter, when it will launch its joint venture
with French luxury conglomerate PPR.
Online clothing retailers such as Yoox and British rival ASOS
have offset weaker retail sales in their home markets
as more shoppers turn to their smartphones to buy leather bags
and fashion accessories.