MySale shift to 'ANZ First' reaps strong rewards with a return to profit
Good looking back, good looking forward. That’s pretty much the assessment of online fashion retailer MySales’ six-month trading update released Friday.
Trading for the now-mainly-Australia/New Zealand-focused business was “ahead of expectations” for the half-year to 31 December and the London-listed business is “confident of further progress in H2”, it said.
It also noted the group is making good progress in executing its shift to a ‘ANZ First’ strategy, “introduced to simplify and refocus the business”.
So how does that translate into performance?
Group revenues jumped 14% year-on-year to A$63.3m, reflecting the changes made to its operating model that includes an “inventory-light marketplace platform”.
MySale also said it has continued to make “significant progress” with its operational KPIs, increasing the number of monthly new brand partners during the period by 31%, underpinned by a 45% increase from US, UK and European partners.
Group EBITDA for the half year is also trading ahead of expectations with a gain of A$2.5m compared to a loss of A$3.6m in the prior year period.
Gross margins have continued to improve, rising to 37.9% from 34% a year ago, thanks to its ongoing focus on operating and overhead costs, “allowing the business to deliver strong operational leverage”.
Also at the end of the trading period, the group reported a cash balance of A$15.8m and said it continues to operate on a debt-free basis.
And it noted that while the impact of the Covid-19 pandemic in ANZ hasn't been as severe as in other countries, “the broader consumer and economic outlook remains uncertain".
CEO Carl Jackson said: ”We have made excellent progress in the last six months and are beginning to see the benefits of our ‘ANZ First’ strategy come through. The board remains very confident about the group's attractive positioning as an off-price specialist, with a clear customer offering built around MySale Solutions”.
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