Net-a-Porter losses narrow as plans pay off

 
Kasmira Jefford
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NET-A-Porter, the luxury online retailer, said it narrowed its losses by around £4m last year as its investment in growing its presence overseas began to pay off.

The group, which is owned by Swiss luxury conglomerate Richemont, made a loss before tax of £23.2m in the year to 31 March 2013.

That compares with a £27m loss the previous year, when it splashed out £23m on building new automated distribution centres in London, the US and Hong Kong.

In recent filings on Companies House, Net-a-Porter said it sold more clothing and accessories at full-price last year, helping to drive total revenues up by 18 per cent to £434m. Total margins improved to 45.6 per cent from 41.2 per cent as it put fewer items on sale.

However, the company warned it faced increasing competition from traditional retailers ramping up their online activities, as well as other luxury online players.

“The group is countering this competitive risk by regularly adding new designers, by enhancing its technology offering and online experience,” it said in a statement.

Net-A-Porter has been upping its global presence and opened offices in New York and Shanghai in 2012, as well a new office and its third distribution centre in Hong Kong.

In March last year, websites were launched in French, German and Mandarin and the group started selling beauty products online.

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