The retail industry is in transition, with the ever-growing eCommerce sales pushing brick-and-mortar stores to revamp the consumer experience. As a result, we’ve seen various large retailers either integrate technology into stores, file for Chapter 11 bankruptcy or close a large chunk of stores. In the name of saving face, retailers are coming up with some unique survival techniques.
One retail area that seems to be hit or miss during this transitional period is the world of luxury shopping. In a surprising earnings report, online luxury retailer Yoox Net-a-Porter is reporting that its earnings for the first half of the year have outperformed analysts estimates. Analysts were estimating adjusted earnings to be 90 million euros, but the actual results rose 28 percent to 98 million euros.
The retailer is attributing this positive outcome to the growth of its mobile platform. With its Q2 sales seeing a slight uptick, with a 20 percent increase over its 19 percent increase in Q1, this may be indicative of what’s to come in the second half of the year for the luxury retailer. Shares for Yoox Net-a-Porter saw a rise of 30 percent from the mid-March timeframe.
Yoox Net-a-Porter CEO Federico Marchetti, commented on the company’s earnings to Fortune and highlighted expectations down the line. “Since the second quarter, we’ve seen a continued acceleration within our range,” Marchetti said. “We’ve decided to be a company centered on mobile, and we expect that percentage to keep growing every week.”
Bain & Co. is forecasting luxury eCommerce to be one of the fastest-growing channels for high-end products between now and 2020. As more consumers hop onto Yoox Net-a-Porter’s mobile platform, there’s a chance that we’ll see a significant sales increase.