Australian flash Sales etailer MySale has reported that revenues increased by 8% to A$123.3m (£62.6m) for the six months to December 31, but it made an EBITDA loss of A$11.4m (£5.7m).
The etailer had warned in January that it expected to make a loss due to a number of one-off investments in marketing and other product initiatives in the first five months of the financial year, to stimulate revenue growth.
The company expects to generate a breakeven EBITDA in the second half.
During the period, the company relaunched the Cocosa luxury Sales site in the UK and closed its under-performing US and South Korean websites in order to focus on its key markets of Australia and New Zealand, Southeast Asia and the UK.
Chief executive Carl Jackson said: “During the first half we focused on the growth of the business and member acquisition. As we now have a membership base of more than 15 million we were able to take action to reduce marketing and promotional costs and capitalise on our international product mix and larger membership.
“The underlying business is strong and the actions taken in December position the group to benefit from anticipated margin growth in the second half. Our cash position is strong and we are excited by the great long term opportunities in our core ANZ region, South-East Asia and the UK.”
A key part of MySale’s model is taking end of season stock from UK and European brands and selling it as new season product in the Australia and New Zealand regions, because of the Northern and Southern hemisphere counter seasons.
The group said it plans to use of its “substantial cash resources” to buy some of the high levels of autumn 14 stock available following the unseasonal warm weather at the end of last year in the UK, where prices are attractive.
The board said it is focused on turning its close relationships with Arcadia and Sports Direct, which both own a stake in the company, into increased revenue.