Indian online fashion retailer Koovs has reported a 25% year-on-year drop in sales for the 12 months to 31 March 2018.
Gross order value fell 22% to INR1.26bn (£14.8m) from INR1.62bn (£18.6m) in 2016/17. Net sales fell from INR1.01bn (£12.5m) to INR 817m (£9.6m). Wholesale revenue declined by 29% to NR543.2m (£6.4m).
At INR1.3bn (£15.3m), Koovs’ pre-tax loss was 22% lower than the previous year, as a result of “cash preservation and cost-saving initiatives”. It cut “cash outflow from operating actvities” by 50% to INR1.2bn (£13.9m).
Koovs cited this lack of funding, restricted marketing spend and the conservation of cash reserves for its financial performance for the year.
Chief executive Mary Turner said its margins had improved, despite the wider market being driven by deep discounting. Margins are now 14% of net sales, compared with 4% last year.
The London-based etailer has its sights set firmly on becoming the “Asos of India”, and in March 2018 stated its intention to raise £50m investment to fund its five-year growth plan.
During the year it designed capsule collections for Simply Be in the UK.
In July, Indian fashion group Future Lifestyle Fashions announced it had bought a 29.9% stake in Koovs, in a £15.8m deal to be completed over the next six months.
Koovs’ latest financial report shows that around £45m additional capital funding has been raised in total. This comprises £12m from directors and investors, £4.3m in a media-for-equity deal from HT Media, one of India’s largest media companies – plus an agreement to invest an additional £12.9m over four years if needed – and the injection from Future Lifestyle Fashions.
Chairman Waheed Alli said: “The past financial year has been tough for Koovs and was marked by a lack of funding. This meant that management had to conserve the company’s cash resources prudently, thereby reducing markeng spend, which inevitably had an impact on headline sales.”
He added: ”The funding puts Koovs back on track. We are now in a position to refocus on day-to-day operations and deliver on our strategy by resuming our growth plan over the coming years.”