LONDON (Alliance News) - Indian online fashion retailer Koovs PLC dropped in early trade on Thursday after the company said it will spend more on marketing this year than anticipated and expects the trend to continue, even as it said it expects sales to have tripled in the year to the end of March.
Koovs said it expects marketing costs for the year to the end of March to be around INR320 million, or around GBP3.2 million, around GBP2.1 million higher than originally anticipated. It also expects these higher costs to continue given the growth of the Indian e-commerce market.
But the rise in costs will wipe out the sales growth the company expects to post for the year, up to GBP2.7 million from GBP720,000. Visits to its website rose to 20.9 million from 7.6 million in the year.
The company said it intends to seek further funding to accelerate the development of the company.
"We want to build on the momentum achieved so far and seize the opportunity available to us. The marketing costs are higher than we had anticipated reflecting the pace of growth in the Indian economy. We will therefore seek further funding in due course to realise the potential of the business and the market," said Koovs Chairman Waheed Ali.
Shares in the company were down 40% just after the open on Thursday, the worst performer in the AIM All-Share.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
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