MySale suffers drop in shares after group issues profits alert
SHARES IN online retailer MySale plunged after the firm warned it will make a half-year loss amid challenging trading in its peak festive quarter.
The group – which runs flashsale sites and has online retail brands across Australia, New Zealand, South East Asia and the UK – said it expects to make an underlying loss in its first half to December 31, with full-year sales and profits set to be “significantly” lower than expected.
Its shares fell more than 50 per cent after the profit alert, despite assurances that the group expects a “significantly improved” performance in its second half.
MySale – which counts retail tycoons Sir Philip Green and Mike Ashley among its investors – blamed its woes on worse-thanforecast market disruption due to changes to general sales tax regulations in Australia, the group’s largest market.
The firm said it was taking action to address the changes in Australia while it has also launched a review of its operations in the UK and South East
Asia, including possible “strategic” sales.
The UK and South East Asia account for about 15 per cent of group sales.
Chief executive Carl Jackson said: “We are very disappointed in the performance during this year’s peak trading period.
“In response to this under-performance, we have significantly accelerated and expanded our existing plans to streamline the business, reduce the cost base and make changes to the product strategy.”