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Less growth than anticipated for

But there is still some good news in the company’s trading update for the four months to 31 December 2014.


Less growth than anticipated for

But there is still some good news in the company’s trading update for the four months to 31 December 2014.

Revenue was up 25% (27% CER), UK up 25%, Rest of Europe up 35% (41% CER) 

Gross margin climbed to 59.9%, up 30bps on prior year. The number of active customers increased to 2.9 million, up 31% on prior year.

The global fashion e-tailer announced in their interim results statement in mid-October that they had managed marketing spend and growth in the early part of this period, whilst also delivering the successful implementation of the new warehouse management system and fully responsive website. Marketing was then increased to stimulate sales, however, the resultant growth was less than anticipated, "principally due to heavy promotional activity on the UK high street arising from the warm autumn season".

In light of the prevailing sales momentum in the business, expects its full year results to be below current market expectations. Anticipated growth for the second half as a whole should be in line with the 25% growth for the four month period to 31 December 2014. As a result expected EBITDA margin for the full year to be in line with the first half at approximately 10%.

Joint chief executives Mahmud Kamani and Carol Kane said: “Whilst the period proved a challenging trading environment, we have still grown the business by 25%, albeit short of our previous expectations. We are very confident that our fashion credentials, pure play online model and the significant investment in infrastructure will continue to drive growth in the UK and internationally.”

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