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Koovs said it has been a challenging year for the market but expects to return to growth in the next financial year Koovs narrowed its first half losses but revenue fell Koovs PLC ( LON:KOOV ) shares tumbled after the Indian online fashion retailer said it expects full year sales to be hit by lower marketing spend as it addresses ongoing funding requirements. Shares dropped 40.28% to 16.12p in morning trading. The company said marketing expenditure is "significantly down" at the moment and additional spend will depend on the timing of the closure of its funding programme announced in July, which is expected to close "shortly". As part of the funding programme, the company raised £8.9mln during the first half from the issue of convertible loan notes. It expects to raise £18.9mln in total. Reduced marketing spend saw the pre-tax loss for the six months to 30 September narrow to 37.7mln from £9.1mln last year. However, revenue fell to £3.9mln from £4.0mln a year ago. Gross sales from the website was flat at £7.9mln, reflecting demonetisation in India, the introduction of a goods and services tax, and heavy discounting by rivals. Koovs said the quality of its sales improved with markdown sales falling to 20% of sales from 29%, helping to boost margins. The trading margin jumped to 18% from 2% and gross margins improved from a decline of 20% to 0%. The average order value increased by 21% to £17 from £14.70 last year.
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