Koovs says it's on track to return to growth
Koovs, the London-listed online retailer which sells Western fashion to the Indian market, says it is on track for a return to growth after sales dropped in the last financial year.
The company said gross order value in the 12 months to 31 March was down from £14.8m to £12.8m, however it reported that sales in the final three months of the year had picked up and that the positive momentum had continued in the first quarter of the new financial year, with gross order value up 104% ahead of the same period last year at £4.82m.
Net sales for the year were £7.5m (FY 2018: £9.6m) while the adjusted EBITDA loss was reduced to £12.9m (FY 2018: £13.9m. Web traffic was up to 75.9m (FY 2018: 65.9m) and total funds raised during the period were £22m.
Chairman Lord Waheed Ali, a former chairman of ASOS, said: "Koovs is firmly back on track evidenced by the 104% growth experienced in Q1 trading. We are excited about the rest of the year, as we continue to invest in both marketing and our product range."
Earlier this year Koovs secured an investment deal with Future Lifestyle Fashions (FLFL), a subsidiary of India’s largest retail group. The deal means FLFL will inject £10.5m into the company, marking an average price of 15p per share.
"Building on the success in the last three months of FY2019 we expect to return to significant full year growth in FY2020 with a focus on securing a continued improvement in trading margins. The recent funding secured from FLFL will fuel our ability to continue to invest in marketing to increase traffic levels, together with an expansion in our product offering, designed to lift conversion rates," said Koovs CEO Mary Turner.