Australian flash sales site MySale improved margins and boosted sales in its first half, as poor autumn trading in the UK led to retailers holding surplus stock.
Louboutin on Cocosa
MySale said it had benefited from stagnant trade in the UK and Europe caused by warm, wet weather in the run-up to Christmas.
The firm has been selling end-of-season autumn stock from the UK and Europe, where it works with the likes of Arcadia’s Topshop, in Australia and New Zealand, where the autumn season begins in April.
“We’re seeing a lot more stock around this year,” said Carl Jackson, chief executive of MySale.
“We also have much more opportunity on price this year as there is so much stock out there, so this has led to a margin improvement. We’re in a unique position because we offer a seasonal solution for brands.”
The business, in which Mike Ashley and Sir Philip Green are major shareholders, said margins improved by 250 basis points for the six months to December 31, while gross profit increased 15% year on year. Underlying EBITDA was A$1.5m (£771,855), up A$12.9m (£6.63m) from 2014.
MySale has also boosted its gross margin by increasing the level of own bought stock from 10% to 15% in the last year. The remaining 85% is consignment stock. The firm also said it was no longer offering promotions on postage in an effort to keep costs down.
In the UK, MySale’s premium flash Sales site Cocosa, which it relaunched in 2014, is “gaining momentum”.
“The product and brands have really gone up a gear,” said Jackson. ”We have focused on more premium and luxury brands for our customers here. We have strong international brands like Juicy Couture, Versace and Burberry all at 70%-80% off. This has helped us to secure the right customers and they are repeating with us.”
“We set ourselves objectives in the first half of the financial year and we have achieved them. The level of products and brands we have secured, on Cocosa in particular, really supported our customer experience and in turn our gross profit.”