MySale flags a profits downturn after spending big on Oz pushComments 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.