MySale predicts half-year loss as revenues tumble

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MySale
// MySale expects to report half-year loss amid “challenging” trading conditions
// Group revenues declined by 17% to AUD $126 million (£68.9 million) during the period
// It currently has tycoons Sir Philip Green and Mike Ashley in its shareholder base

MySale has predicted that it would report a half-year loss amid “challenging” trading conditions.

The Australian online retailer said in a pre-close trading update that it was forecasting an underlying EBITDA loss of AUD $5 million (£2.72 million) in the six months to December 31, 2018.

This compares to the AUD $5.5 million profit it recorded during the same period the previous year.

MySale, which has retail tycoons Sir Philip Green and Mike Ashley in its shareholder base, also saw group revenues decline by 17 per cent to AUD $126 million (£68.9 million) during the period.

Meanwhile, gross margins slipped from 30.2 per cent a year ago to 23.4 per cent.

MySale blamed the decline on the “market disruption” driven by changes to regulations around GST – Australia’s equivalent to VAT.

It added that “product mix and inventory issues”, plus a reduction in its offline activities during the period, had affected its sales performance.

However, the the retailer said its full-year results would be “in line with market expectations” despite the declining first half.

MySale said it was aiming to improve its product mix and increase local sourcing in order to strengthen its margins in the second half.

“While performance during the first half of the year has been disappointing, we have taken immediate action to address the issues,” MySale chief executive Carl Jackson said.

“Our previous plans to streamline and automate the business have been accelerated and these actions are already delivering results.

“The changes to product strategy are materially under way and will be completed in the second half.

“While we have experienced a short-term dip in revenue and profitability, we anticipate the actions initiated will deliver a positive underlying EBITDA in the second half and for the full year.”

MySale will reveal the official first-half figures in its interim results next month.

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