Digitizing Luxury - Growth, Profitability, and Financial Flexibility at YOOX: Case Study for Graduate Level

14 Pages Posted: 9 Dec 2015

See all articles by Thomas Jeanjean

Thomas Jeanjean

ESSEC Business School - Department of Accounting and Management Control

Rucsandra Moldovan

Concordia University, Quebec - Department of Accountancy

Date Written: December 5, 2015

Abstract

YOOX was one of the first companies that succeeded to get the reluctant luxury goods retail segment on board with the idea of online commerce. Started in Italy, it quickly expanded throughout Western Europe, North America, China, and Japan, with explosive annual sales growth rates of over 20% in the last four years. How did the company finance this growth and how sustainable is this growth rate?

Learning objective This case study is intended as a refresher tool for financial reporting and analysis oriented primarily towards the analysis of working capital, solvency, liquidity and growth. After discussing this case study, students will better understand the importance of working capital management, assess the usefulness of various measures of solvency and liquidity, and recognize the limits to organic growth.

Audience Graduate level/Executive Education/MSc/MBA

Keywords: educational case study; teaching; financial statement analysis; working capital; liquidity; profitability; growth; organic growth; financial flexibility; working capital management; YOOX; return on equity

JEL Classification: M41; G32; A23; M49; G39; A29

Suggested Citation

Jeanjean, Thomas and Moldovan, Rucsandra, Digitizing Luxury - Growth, Profitability, and Financial Flexibility at YOOX: Case Study for Graduate Level (December 5, 2015). Available at SSRN: https://ssrn.com/abstract=2700207 or http://dx.doi.org/10.2139/ssrn.2700207

Thomas Jeanjean

ESSEC Business School - Department of Accounting and Management Control ( email )

Av Bernard Hirsch
Cergy-Pontoise 95021
France

Rucsandra Moldovan (Contact Author)

Concordia University, Quebec - Department of Accountancy ( email )

Montreal, Quebec H3G 1M8
Canada
+1-514-848-2424 ext 2528 (Phone)

HOME PAGE: http://https://sites.google.com/site/rucsandramoldovan

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