Dive Brief:

• Net-a-Porter posted record sales in the fiscal year ending in March, the company said in a filing to regulators in the U.K. The said revenues rose 22.8% to £654 million (British pound sterling).

• The group also posted its first profit, of £11 million, thanks for rising demand for luxury goods. Adjusted earnings before interest, tax, depreciation, and amortisation at Net-a-Porter rose to £54.3 million, from £38 million year over year year before, and pre-tax profits rose to £11 million, from a £10 million loss year over year. 

• The luxury e-commerce retailer will be acquired by Italian e-commerce retail company Yoox, which also deals in luxury goods but where shoppers are more likely to encounter some discounts. 

Dive Insight:

Once their merger is complete sometime later this year, the e-commerce company that combines Yoox and Net-A-Porter will be a formidable one. Although luxury retailers have it better than most even in tougher economic times because wealthier consumers are more able to ride out financial dips, many are doing even better in many parts of the world as economies stabilize.