Retailer Koovs hangs hopes on 2020 growth despite drop in sales
Indian fashion retailer Koovs said it is on track for a return to growth in 2020, despite a decline in sales over the last 12 months.
The London-listed firm posted net sales of £7.5m in 2019, down from £9.6m the previous years, while revenue was flat at £6.4m. Shares in Koovs dropped more than six per cent following the announcement.
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Despite the rocky trading, Koovs said the business is well-placed to return to growth next year.
The online retailer, which offers western fashion for Indian consumers, said its recovery at the end of the last financial year has continued, with gross order value up 104 per cent in the first quarter.
Koovs, which is led by Labour peer and former Asos chair Lord Waheed Alli, also increased its trading margin to 18 per cent, and has seen web traffic grow to 75.9m.
“Koovs is firmly back on track, evidenced by the 104 per cent growth experienced in first-quarter trading,” said chairman Alli. “We are excited about the rest of the year, as we continue to invest in both marketing and our product range.”
Earlier this year the Aim-listed firm secured an investment deal with Future Lifestyle Fashions (FLFL), a subsidiary of India’s largest retail group.
The deal will see FLFL inject £10.5m into the company, marking an average price of 15p per share.
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“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 chief executive Mary Turner.
Main image credit: Getty