Indian online fashion retailer Koovs has reported a 13.5% drop in sales during the 12 months to 31 March, as it announces new funding to support its growth strategy.
Gross order value (GOV) decreased to £12.8m at the London-based etailer, from £14.8m in 2017/18.
However, GOV for the second half of 2018/19 increased to £8m, compared with £6.9m in the same period the year before.
Trading margin for the full year increased to 18%, up from from 14% the previous year.
Web traffic was up by 50% to 75.9 million visitors compared with 2017/18, while its social media base rose to 2.7 million followers.
The business did not disclose profits.
Separately, Koovs has announced that it has reached an agreement, subject to shareholder approval, with Future Lifestyle Fashions (FLFL), the fashion business of financial retail firm Future Group, to sell a share in the group.
FLFL will invest around £10.5m into Koovs, in exchange for a 25.8% share. The proceeds will be used to support Koovs’ growth strategy.
FLFL operates more than 400 stores in India, and owns and markets 30 fashion brands through branded stores, department stores and multi brand outlets, including its own Central and Brand Factory chains.
The partnership will help with Koovs roll-out of four concessions in Central Stores in Bangalore (two stores), Hyderabad and Pune.
Mary Turner, Koovs’ chief executive, said: “The external factors that disrupted our business are now firmly behind us. We have deployed the funds raised in 2018 to resume marketing activities and expand the product range – this was the driving force behind the growth in sales and trading margin experienced in the second half of the year. We are now building on this positive momentum and are starting to deliver the growth we always believed the company is capable of.”
Lord Alli, chairman of Koovs, commented: “Koovs has been through challenging times over the last couple of years. Mary and the team have taken the decisive actions necessary to help navigate through these disruptions, further highlighting the resilience of our business model and the strength of the team. With the support of our shareholders, the team is now driving the business forward and we are confident we can achieve strong growth this financial year. I would like to personally thank everyone for all their hard work and dedication throughout this testing time.”