Koovs PLC Trading update for financial year to 31 March 2017 (4484B)
April 04 2017 - 1:00AM
UK Regulatory
TIDMKOOV
RNS Number : 4484B
Koovs PLC
04 April 2017
For Release at 7am on 4 April 2017
Koovs plc
Continued delivery of strategy with sales up 87%
100% increase in units shipped and repeat customers
Trading update for financial year to 31 March 2017
Koovs plc ("Koovs", the "Company" and, together with its
subsidiary undertakings, the "Group") (AIM: KOOV), the
fashion-forward business focused on the young Indian e-commerce
market, today announces a trading update for the financial year to
31 March 2017.
Financial & operational highlights
-- Sales* up 87% to GBP18.6m (1.62Bn INR)
-- Units shipped and repeat customers up 100%
-- Registered users up 80% to 1.8m
-- Web traffic up 77% to over 78.45m
-- Social followers exceeding 2m
Koovs' strategy continues to deliver significant growth with
sales* up by 87% to GBP18.6m for the full year to 31 March 2017,
underpinned by a year-on-year 100% increase in both units shipped
and repeat customers. While demonetisation(1) in India impacted the
whole market, Koovs' proactive approach on customer payment and
delivery options, coupled with a strong Christmas trading period,
means Koovs has delivered growth of more than 5x the Indian
e-commerce market as a whole. The company continued to improve its
gross margin position by improving intake margin and controlling
the level of discounts given, and expects to generate positive
gross margins in FY18.
Mary Turner, CEO, said: "Koovs' distinctive fashion proposition
is really working with our young target market in India. Engagement
with our young customer is delivering strong growth and we continue
to significantly outperform by five-times the e-commerce sector
growth in India."
Waheed Alli, Chairman of Koovs plc, said: "India is now well
established as the fastest growing economy in the world. Koovs'
authentic global fashion is the right proposition at the right time
in this major market and there remains huge confidence for its
continued growth."
Fashion & Brand
The company's brand position as a fashion authority, offering
exclusive Koovs Private Label designs, goes from strength to
strength. Unique lifestyle content for online and mobile and four
standout designer collaboration collections during the year, with
Manish Arora, Hattie Stewart, Gauri & Nainika and Masaba, have
further amplified Koovs clear position for authentic western
fashion. New collaborations to launch this spring from Disney and
the Princess Collection with Daniella Helayel, further raise the
profile of Koovs as a fashion first company.
Koovs also continues to invest in the brand and amplify its
unique proposition. Phase three of the Koovs brand campaign
commenced mid-March and has lifted web traffic by 50%, peaking at
two million in a single week. Koovs.com was also named as 'The Most
Popular Fashion Portal with Youth' by The Youth Marketing Forum in
February 2017.
First for Customer Satisfaction & Social Engagement
With the top Net Promoter Score in its category, at 29 v 21
category average (RedSeer), Koovs is No.1 for customer satisfaction
and is also the top brand in its peer group for customer engagement
on Instagram and Facebook India - Facebook's single largest
territory with 142 million members.
Expanding Koovs to New Territories
The Koovs Private Label will remain exclusive in India, but its
continued success means the company has now announced its strategy
to expand into additional high potential markets in Asia-Pacific
and the Middle East. The first international distribution agreement
will launch the Koovs Private Label Collection in the Middle East
on SOUQ.com, the region's leading e-commerce player, this
summer.
* Gross sales order value placed through the KOOVS.COM website
including taxes. This does not represent the revenue of the
Group.
(1) Demonetisation: On 8 November, the Indian Government
announced it would immediately replace the Rs500 and Rs1000 notes
with new Rs500 and Rs2000 denominations. This was a significant
move and caused short-term cash liquidity issues, including for
e-commerce companies, as cash on delivery is standard practice in
the Indian market.
Notes to Editors
Koovs is focused on building KOOVS.COM into the leading fashion
destination in India. The Company is headquartered in London, where
the majority of its design and buying team is based, with all other
operational functions based in India.
For further information please contact:
Koovs plc
Mary Turner/Robert Tel: +44 (0)20
Pursell 7151 0170
Peel Hunt LLP
Dan Webster / George
Sellar Tel: +44 (0)
Jock Maxwell Macdonald 20 7418 8900
(ECM)
Media enquiries:
Headland
Lucy Legh / Rob Tel: +44 (0)20
Walker / Pippa 3805 4822
Murphy
This information is provided by RNS
The company news service from the London Stock Exchange
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