MySale has reported a rise in full-year sales and expects to “break even” in the second half, seven months after issuing a profit warning
In a trading update for the year to June 30, the Mike Ashley and Sir Philip Green-backed private Sales fashion etailer said sales increased 5% to A$235m (£110.4m) and added that it would “at least break even underlying EBITDA for the second half of the year”.
MySale added it had improved gross margins in the second half of the year by focusing its promotions, reducing fixed costs and increasing its level of own-brand products.
The positive performance comes after MySale, which sells out-of-season clothing, warned last December that annual profits would be “materially below market expectations” after the company was hit by tough competition in Australia and heavy investment in newer markets including the UK. The site, which launched in Australia in 2007, received investment from Sports Direct boss Ashley and Topshop tycoon Green last year.
MySale also revealed it has hired Iain McDonald, a non-executive director at The Hut Group and Atterley Road, as non-executive chairman with immediate effect. It said a further non-executive director appointment would be announced in due course.
Non-executive chairman David Mortimer will step down from the role but will remain as non-executive director. Non-executive director Adrian MacKenzie will leave the business.
MySale chief executive Carl Jackson said: “MySale is focused on profitable growth and we are pleased with the progress achieved over the last six months. We are delighted that Iain McDonald has joined as chairman, bringing a wealth of online retail and significant UK capital markets experience.”
In a statement the etailer said: “The group anticipates that the positive momentum of the second half FY2015 shall continue into the current financial year with increasing revenues, improving gross profit margins and careful control of costs delivering an expected return to EBITDA profitability in the coming year.”