Italian etailer Yoox.com and off-price luxury site The Outnet will combine buying efforts following the merger, which completed October 5th. Federico Marchetti, Group Chief Executive, commented on how well the work to integrate Yoox and Net-a-Porter Group, The Outnet’s parent company, is progressing: “The synergies of the merger have exceeded our expectations and, based on the detailed work of our teams we have raised our target [of annualised synergies by 2018] from €60m to €85m.” It is planning to share its global inventory virtually, connecting all of its online stores and geographical markets, improving product sourcing and lower delivery and warehousing costs by optimising geographical allocation of stock in order to bring it closer to the customer. The group is also expecting to decrease delivery and credit card costs for the customer as a result of its larger scale, as well as reducing hiring rate in overlapping functions. They want to maximise cross-selling and up-selling opportunities across the Net-a-Porter and Yoox customer bases as well as saving on marketing spend.
Yoox Net-a-Porter Group reported net revenues rose 32.2% to €1.2bn for the nine months ended September 30, with adjusted EBITDA up 40.7% to €82.2m. The combined group had 26.1 million average monthly unique visitors and 2.3 million active customers by the end of the period, compared to 22.4 million and 2 million respectively in the first nine months of 2014. Orders were up by 900,000 to 5 million, with an average order value of €354, up from €327 in 2014.
Eva Chen, previously Head of Fashion Partnerships at Instagram, and Vittoria Radice, Vice Chairman of Italian department store chain La Rinascente, have both been appointed as independent Directors of the company.