Koovs PLC FY2017 nine-month trading update to 31/12/16 (0182V)

TIDMKOOV

RNS Number : 0182V

Koovs PLC

25 January 2017

Koovs plc

Sales* up year on year by 101% to GBP13.45m

FY2017 nine-month trading update to 31 December 2016

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 year to date trading update for nine months from 1 April to 31 December 2016.

Financial & operational highlights

   --      Sales* up +101% to GBP13.45m 
   --      Web traffic, registered users and social media all up over 100% 
   --      Most successful designer collaboration to date with red-carpet favourites Gauri & Nainika 

Koovs delivers strong sales growth, increasing 101% YoY to GBP13.45m for nine months to 31 December 2016, despite the impact of demonetisation^.

Sales growth will be impacted by demonetisation but with no overall effect on profitability targets for FY2017. Web traffic, registered users and social media followers have all increased by over 100%. In addition, the company's strategy to offer unique and exclusive designs, has resulted in the most successful designer collaboration to date. Launched in November, the premium party dress collection from red carpet favourites Gauri & Nainika sold out in record time, shipping over 1000 units in three days, 50% of the total collaboration collection.

Mary Turner, CEO, said:

"Koovs continues to deliver excellent year on year growth and is now established socially as the favourite western fashion-forward brand in India.

"Despite the impact of demonetisation, we have doubled sales, which is testament to the team's proactive actions, the strength of our brand and the uniqueness of Koovs' fashion-forward product offer."

Waheed Alli, Chairman of Koovs plc, said:

"The business continues to demonstrate the amazing potential of the Indian ecommerce market and we are all excited about the year ahead."

Key Performance Indicators

 
                         9 Months      9 Months 
                         YTD FY2017    YTD FY2016   Growth 
 Koovs.com sales*        GBP13.45m     GBP6.69m      101% 
 Web site visits            57m          28.6m       100% 
 Registered users        1,637,759      743,594        120% 
 Mobile transactions     536,387        213,373        151% 
 
 

* Gross sales order value placed through the KOOVS.COM website including taxes. This does not represent the revenue of the Group.

^ 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                     Tel: [phone] 
  Mary Turner/Robert Pursell 
 Peel Hunt LLP 
 Dan Webster / George          Tel: [phone] 
  Sellar                        8900 
  Jock Maxwell Macdonald 
  (ECM) 
 Brunswick Group LLP 
 Alison Kay                    Tel: [phone] 
                                5959 
 

This information is provided by RNS

The company news service from the London Stock Exchange

END

TSTSEAFALFWSEFF

(END) Dow Jones Newswires

January 25, 2017 02:00 ET (07:00 GMT)