Yoox prepares to float
Online fashion retailer Yoox is preparing to float on the Milan Bourse this week, and has set share prices at €4.30 each – the top-end of the range that was predicted by brokers – making the company’s value in excess of €200 million.
The share price has been taken from a multiple of 26 times on expected earnings for 2010, reflecting Yoox’ rapid growth and putting the etailer ahead of Asos which trades at 20 times earnings in London.
The company – which as well as hosting it’s own site also provides an ecommerce platform for brands including Dolce & Gabbana, Roberto Cavalli, Jil Sander, Emporio Armani, Valentino and Diesel – expects to raise as much as €126 million when shares start trading tomorrow.
The flotation and top-of the range share pricing will no doubt be a welcome relief to European online fashion retailers following the recession.
Italian luxury brands use the web to boost holiday sales
An interesting article in this week’s Bloomberg discusses the huge shift towards e-commerce by Italian luxury brands who have until now resisted the temptation to sell online.
In recent weeks online stores have been opened by Valentino, Armani, Roberto Cavalli and Ferragamo. All four have opted for a strategic partnership with an existing e-commerce provider. Valentino and Cavalli have opted for a relationship with Yoox, whilst Armani and Ferragamo have gone with Neiman Marcus. Whilst the operational benefits of partnering existing operators undoubtedly make the transition to selling online more manageable, a clear downside is a lack of differentiation between the various offerings.
Gucci set the benchmark for a luxury brand’s e-commerce site a couple of years ago, with a beautifully designed, Flash-free website. Since then we’ve seen a dearth of innovation in the field and sadly these recently examples do little more to impress.
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