Net-a-Porter’s financial results showcase increased revenue, but also of a delay in profitable results. The e-commerce portal is part, along with Yoox, of the digital conglomerate YNAP, owned by Richemont. Specifically YNAP closed the 15 months that ended on March 31st, 2019, with a +11% growth in revenue but 10.5 million pounds of losses. Net-a-Porter’s sales grew, but so did costs.
The income statement
According to documents deposited at Companies House (similar to a UK Chamber of Commerce on January 6th), Net-a-Porter sold goods for 710.9 million pounds during the period. But not all that glitters is gold, reports Business of Fashion, because costs grew a lot more than sales, in proportion. Cost of goods sold (COGS) increased by 17% (426.1 million), administrative expenses increased by 40% (261.6 million). The reported loss is even greater if added to the 47.6 million loss of the previous period
“The period in question is one of transition – reads the commentary that accompanies Net-a-Porter’s income statement -. Sales remained strong. The number of clients and orders continues to increase”.