MySale warns on profit
Flash sales retailer MySale has warned that its full year pre-tax profits will be �materially� below market expectations after it experienced challenging trading conditions in its original markets of Australia and New Zealand in the five months to end November.
Overall, MySale’s revenues were 4% higher than the previous year. However, the group said it experienced significant regional variations.
Having floated on London’s Alternative Investment Market in June, the retailer said it put in a strong performance in Asia, with revenues up 29% year-on-year. In addition, sales in its Rest of World operations were ahead of expectations, including a maiden contribution from its new markets in the UK and the USA.
MySale said the UK in particular was trading ahead of expectations and that the company was becoming increasingly confident in the UK market opportunity. The group has now established a new buying office in London and a fully operational UK distribution centre in Corby. Since its IPO in June, Mysale has begun operating in a further four countries including the UK and the USA, bringing the total number of countries in which it operates to 10.
Meanwhile, sales were flat year-on-year in its original markets of Australia and New Zealand due to increased competition and a weakening economic outlook.
Looking ahead the group said: “Overall MySale anticipates that revenues for the full year will show double digit growth, despite the slowdown in the Australian economy, as its new markets continue to develop. Profit-before-tax is expected to be materially below market expectations, as MySale continues to grow its membership for the long term in our newer markets.”
MySale said its new membership acquisition remained “very strong” with 3.1 million new members acquired in the five month period bringing the total to more than 15.5 million. The group added that mobile continues to play a pivotal role in its development with almost four million apps downloaded.
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