MySale, the parent company of Cocosa, recently issued a profit warning citing challenging trading conditions during its peak second-quarter period. The company projects that both revenue and profits for the fiscal year will fall significantly below market expectations. In response to this disappointing forecast, MySale has initiated a comprehensive review of its UK operations to assess its future trajectory within the company.
The financial struggles are largely attributed to unexpected market disruptions caused by changes in Australian sales tax regulations. To combat these challenges, MySale is taking immediate steps to enhance its product mix and ensure sufficient inventory availability. This includes consolidating senior management and product teams in Sydney to streamline local sourcing and boost profit margins.
Furthermore, the company saw revenue decline due to selective price hikes and an unfavorable product mix that favored lower-margin categories. To address these issues, MySale is implementing cost-cutting measures and margin improvement strategies for the second half of the year. The goal is to achieve a modest underlying EBITDA profit by year-end.
Going forward, MySale is strategically focusing on its operations in Australia and New Zealand to capitalize on its size, resources, and market position in the region. The company is also reviewing its presence in the UK and South East Asia with the aim of maximizing value for shareholders, which may involve potential strategic sell-offs in these areas.
Despite the potential divestment of its UK operations, MySale remains committed to the market by launching its Ourpay ‘buy-now, pay-later’ platform with external partners. The company has successfully integrated the technology and is currently conducting a trial with a UK retailer on its Australian website. Initial feedback from the trial has been positive, signaling a shift towards collaborations with international retailers rather than focusing on direct consumer operations in foreign markets.
For more information on MySale and its recent developments, please visit their official website here. Additionally, you can explore the latest financial news and updates on market expectations by visiting financial news platforms like Bloomberg .
