Italian etailer Yoox.com and off-price luxury site The Outnet will combine their buying efforts following their merger, which completed on October 5.
Group chief executive Federico Marchetti said work to integrate Yoox and The Outnet’s parent company Net-a-Porter Group is progressing well.
“The synergies of the merger have exceeded our expectations and, based on the detailed work of our teams we have raised our target [of annualised synergies by 2018] from €60m (£42m) to €85m (£60m),” he said.
Yoox Net-a-Porter Group expects one-off investments and non-recurring operating costs to reach €95m (£67m) over the next three years, of which the majority relates to investments for the development of one “techno-logistics” platform across the group’s online stores.
It plans to share its global inventory virtually to connect all its online stores and geographical markets and improve product sourcing and lower delivery and warehousing costs by optimising geographical allocation of stock to bring it closer to the customer.
The group also expects to lower delivery and credit card costs for the customer, thanks to greater scale, as well as reduce hiring rate in overlapping functions.
It wants to maximise cross-selling and up-selling opportunities across the Net-a-Porter and Yoox customer bases, as well as saving on marketing spend.
Yoox Net-a-Porter Group reported net revenues rose 32.2% to €1.2bn (£0.85bn) for the nine months ended September 30, with adjusted EBITDA up 40.7% to €82.2m (£58m).
The combined group had 26.1 million average monthly unique visitors and 2.3 million active customers by the end of the period, compared to 22.4 million and 2 million respectively in the first nine months of 2014.
Orders were up by 900,000 to 5 million, with an average order value of €354 (£250), up from €327 (£230) in 2014.
“I am thrilled with this result as it is a testament to the strategic rationale of this game-changing merger,” said Marchetti. “We are just at the beginning of making our vision a truly exciting reality.”
Eva Chen, previously head of fashion partnerships at Instagram, and Vittoria Radice, vice chairman of Italian department store chain La Rinascente, have both been appointed as independent directors of the company.
Net-a-Porter founder Natalie Massenet, who resigned as executive chairman on September 2, registered a new company called Imaginary Ventures Limited on October 14 at Companies House. The nature of the new business is listed as “none supplied”.