Transitioning MySale sees full-year sales, earnings dip

By

Nigel TAYLOR

Published
Jul 28, 2022

Evolving into a simpler marketplace platform isn’t without its issues. And London-listed online fashion and lifestyle retailer MySale saw both revenues and earnings fall in the 12 months to 30 June.

Despite those negatives, the Australasia-focused retailer said Thursday it “continues to make good progress” in scaling the group's off-price curated marketplace platform, now its largest channel, while making “excellent progress” in reducing the cost base.

And those positives were supported by active customer numbers growing 15.4% year-on-year to 611,000 leading to Gross Merchandise Value (GMV) increasing 14% to A$142.4 million.

But in its bid to a grow in the marketplace platform and the associated channel mix, statutory revenue fell 20% to A$94.9 million, gross profit dipped 13% to A$40.2 million and underlying EBITDA slipped to A$26,000 from A$4.2 million in the previous year-end period “reflecting the ongoing impact of changes to sales mix and supply chain volatility throughout the year”.

However, a continued focus on operational efficiency saw that cost base cut by 5% to A$40.2m, accelerating in Q4 by 27% to A$7.3m. As a percentage of GMV, the cost base was 28% compared to 34% a year ago.

And its outlook? “Confident in the resilience and fundamentals of our business model and in the competitive advantage we can gain through continued execution of our 'ANZ First' strategy”, it said.

CEO Kalman Polak added: “We continue to make good operational progress in growing the size of our marketplace platform, both in terms of GMV, which increased by 14%, and supplier numbers. The strategic shift in channel mix towards the platform and away from higher-margin own-stock has impacted revenue and profitability, but we are confident we are pursuing the right strategy for sustainable growth.”