Yoox Net-A-Porter Group (BIT: YNAP) FY16 Results: Solid Sales and Operating Margin Improvement

Executive Summary

• Italian online fashion retailer YOOX Net-a-Porter Group reported net revenues of €1,871 million for FY16, up 12.4% year over year on a reported basis and up 17.7% at constant exchange rates. Revenues were slightly below the consensus estimate of €1,875 million.
• FY16 sales growth was driven by strong performance across all geographic regions, especially the Asia-Pacific region, where sales increased by 27.1% at constant exchange rates. UK sales increased by 15.3% year over year at constant exchange rates.
• YOOX Net-a-Porter provided FY17 revenue guidance of 17%–20% year-over-year growth. The company expects its EBITDA margin to improve slightly over FY16’s 8.3%. The company is also targeting FY17 capital expenditures of €160–€170 million.