Online fashion retailer Yoox said it remains confident in its outlook, despite reporting a 14.1% decline in first-quarter net profit because of increased investment costs.
Net income reached €1.1 million ($1.4 million) for the three months to March 31, compared to €1.2 million in the same period the prior year.
The company said this was due to a 63.1% hike in investment costs — in innovation and technology, and the automation of the central operations and distribution platform.
Excluding these costs, net income would have increased 26.7% to reach €2.6 million.
Revenue increased 21.4% to €110.4 million from €91 million last year. Yoox said it reported solid performances in all of its key markets, including Italy, Europe and Asia.
“In the first three months of 2013, Yoox continued along its growth path,” said company founder and CEO Federico Marchetti. “We are particularly pleased with the results achieved in Italy, which recorded double-digit growth rates for the second consecutive quarter, confirming the trust that our customers have in the Yoox brand.
“On the one hand, we continued to work towards developing the online presence of the brands of the joint venture with Kering. On the other, we have already laid the foundations for enhancing the online stores of some of our important partners, which will be launched during the year,” Marchetti added.
Looking forward, Yoox said it will continue to invest in its logistics platform and in technology.
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