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Koovs to develop new range for Future Group's Brand Factory
3rd Sep 2019 09:27
(Sharecast News) - Indian online fashion retailer Koovs has secured a contract with Future Lifestyle Fashions Limited (FLFL) to develop a new and exclusive fashion range for its discount chain Brand Factory.
Under the terms of the contract, Koovs will develop an exclusive range of menswear clothing on a wholesale basis, with no right of return if the goods are not sold. The range will be available under the Chelsea King brand name and will be sold in 25 Brand Factory stores.
The first season is expected to generate wholesale revenues of about £0.6m and be profitable after deducting the cost of the goods sold. In addition, the Brand Factory sales will pass through Koovs' supply chain, which will also benefit from the increased volumes. The new contract is valid until the end of March 2022.
Koovs also said that the Future Group strategic partnership will see the further expansion of retail distribution for Koovs Private label in FLFL's Central Stores concessions and in new Brand Factory concessions.
Chief executive officer Mary Turner said: "The signing of this latest contract with FLFL, to develop a completely new fashion brand, and the further expansion of our strategic partnership with Future Group brings more growth opportunities for both parties.
"We remain convinced of the long term potential for the Indian online fashion market and for Koovs in particular."
At 0925 BST, the shares were up 1.6% at 6.50p.
Under the terms of the contract, Koovs will develop an exclusive range of menswear clothing on a wholesale basis, with no right of return if the goods are not sold. The range will be available under the Chelsea King brand name and will be sold in 25 Brand Factory stores.
The first season is expected to generate wholesale revenues of about £0.6m and be profitable after deducting the cost of the goods sold. In addition, the Brand Factory sales will pass through Koovs' supply chain, which will also benefit from the increased volumes. The new contract is valid until the end of March 2022.
Koovs also said that the Future Group strategic partnership will see the further expansion of retail distribution for Koovs Private label in FLFL's Central Stores concessions and in new Brand Factory concessions.
Chief executive officer Mary Turner said: "The signing of this latest contract with FLFL, to develop a completely new fashion brand, and the further expansion of our strategic partnership with Future Group brings more growth opportunities for both parties.
"We remain convinced of the long term potential for the Indian online fashion market and for Koovs in particular."
At 0925 BST, the shares were up 1.6% at 6.50p.