Koovs sales double despite demonetisation in India

25th Jan 2017 08:29

(ShareCast News) - Indian online fashion retailer Koovs sales doubled despite the impact of demonetisation in the country, however it expects that future sales growth would be affected but with no overall effect on profitability.For the nine months ended 31 December 2016, sales doubled year-on-year to £13.45m, despite demonetisation.In November, the Indian government said it would replace the Rs500 and Rs1000 notes, the most commonly used notes, with new Rs500 and Rs2000 denominations in a bid to tackle 'black money' - cash earned illegally or not declared to tax officials. Koovs said this caused short-term cash liquidity issues, including for e-commerce companies, as cash on delivery is standard practice in India.The company said that sales growth will be impacted by demonetisation, but maintained that it would not affect profitability targets for the 2017 financial year.Chief executive Mary Turner, said: "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."Meanwhile, webs visits also doubled to 57m and registered users surged 120% to 1.64m.Mobile transactions have been gaining ground as they jumped 151% in the period to 536,387.Shares in Koovs were up 5.22% to 48.40p at 0923 GMT.