Net-a-Porter cuts losses back

Wednesday, 08 January 2014
Luxury online boutique Net-a-porter has managed to decreases its losses by nearly 4 million pounds over the past financial year after the etailer decided to boost investments in overseas expansion and focus on full-price sales, which produced a increase in revenue.

Net-a-Porter reported a pre-tax loss of 23.3 million pounds in the year to March 31, 2013, which is an improvement compared to a 27 million pounds loss the year before. Revenues grew 18 percent to 434.7 million pounds as discounting decreased compared to earlier years which caused gross profit margins to increase to 45.6 percent from 41.2 percent.

Although sales have improved the past year, the etailer keeps a sober outlook for the coming year as the group notes growing competition from luxury fashion house and premium online stores.

“The group is countering this competitive risk by regularly adding new designers, by enhancing its technology offering and online experience experience to its customers and by providing compelling content and an authoritative editorial voice on its websites,” read a group statement.

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