As it runs up to the acquisition of Milanese rival Yoox, online high fashion retailer Net-a-Porter is reporting record sales.
According to figures released by the online merchant, explosive demand for designer handbags and shoes and accelerated growth in the U.S. and U.K. have pushed revenues up by more than 20 percent to over $1 billion in the year to March, The Financial Times reported today (June 15). Those impressive results came to light as part of a filing to Companies House ahead of the acquisition of Italian firm Yoox.
Yoox traffics in a larger number of discounted brands than Net-a-Porter, which exclusively sells full priced fashion items and accessories. The firm’s value is estimated at around $1.65 billion by analysts.
Net-a-Porter, however, cannot buy up all the competition, which is a shame since rivals are proliferating. Traditional luxury retailers are getting more into the online sales act and industry experts expect fashion brands to take greater control over selling their products directly to the consumer, which could cut out online fashion hubs.
“We will strive to remain one step ahead of the game and continue to be the leading destination for fashion content and commerce,” said Natalie Massenet, founder of Net-a-Porter, according to The Financial Times. She further noted the proposed merger will create “the greatest content and commerce platform for luxury fashion in the world.”
Net-a-Porter also reports “growing demand” from customers as a higher proportion of visitors to its site bought items. This year, the company has seen“double-digit growth in core markets” such as the U.S. and U.K. Today, about half of the company’s revenues come from Europe, while a third are U.S. based. Active customers worldwide grew by more than a quarter to 887,000, which led to an increase in the overall number of customer orders to 2.6 million.
Net-a-Porter adds editorial content alongside its clothing, which has a strong tendency to boost up sales.
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