MySale flags a profits downturn after spending big on Oz push

Comments Off on MySale flags a profits downturn after spending big on Oz push

MySale shares fell more than 45% after management said pre-tax profit for the year is set to be “materially” below forecasts, despite an expected double-digit rise in revenue.

The AIM-listed fashion site, which counts Topshop tycoon Green and Sports Direct owner Mike Ashley as investors, blamed the downgrade on a slowdown in its home market of Australia and New Zealand, where it is facing increased competition and a worsening economy.

Sales there have been flat and MySale said it has spent A$9 million (£4.7 million) on marketing and new product initiatives in a bid to kick-start growth.

Sydney-based MySale sells out-of-stock or surplus stock from more than 2500 brands and retailers. Revenue  in the five months to November rose 4% thanks to strong performance in other markets.

Sales in Asia grew 29% and trading in the UK has been “ahead of expectations”. The firm said it has “become increasingly confident in the UK market” following its stock-market listing in June, when it floated at 226p. Shares initially plunged after a pricing error hit its market debut.

Shares in MySale fell 78p to 97.62p.

Source Article from http://www.standard.co.uk/business/business-news/mysale-flags-a-profits-downturn-after-spending-big-on-oz-push-9925641.html

December 15, 2014 |
Copyright © 2018 LondonBusinessLink.co.uk. All Rights Reserved. LondonBusinessLink.co.uk
WordPress Directory Theme

Classified Ads Software

We use cookies to ensure that we give you the best experience on our website.
More about our cookies
Ok
Skip to toolbar