Italian online fashion retailer Yoox Net-A-Porter said on Wednesday it remained committed to the United Kingdom after Britain’s decision to leave the European Union as it pledged to raise its core profit margin in a new business plan to 2020.
The group, which makes around a sixth of its total revenue in the UK and is among Italian listed companies most exposed to the British market, said it was expanding its London headquarters and was hiring new staff.
“The group enjoys well-balanced GBP-denominated costs and revenues, and therefore the impact of a depreciation of the GBP against the euro on profitability is expected to be neutral in 2016 and onwards,” it said in a statement alongside its new group strategy to 2020.
YNAP, born from the merger of Italy’s Yoox with upmarket rival Net-A-Porter, said it expects to raise its group adjusted core profit margin to between 11-13 percent by 2020 from 8 percent last year as it seeks to harness the potential offered by selling via mobile devices.
“We have ambitious plans to grow faster than the online luxury market by leading through mobile,” Chief Executive Federico Marchetti said.
YNAP has its own multi-brand shopping websites but also operates online stores for luxury brands including Armani and Valentino.
The company said it sees net annual revenue rising between 17-20 percent at constant exchange rates and expects to be cash positive from 2018.
The group had previously forecast a high-teens digit rise in sales this year, stripping out the impact of currency moves.
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