Online retailer MySale (LON:MYSL) blamed discounts and marketing costs for a first-half dip into the red, hitting its shares.
MySale, which has flash sales sites in Australia, New Zealand, south-east Asia and the UK allowing brands to offload surplus stock, said promotions reducing postage charges for members reduced overall gross profit.
The group, which has deals with the likes of Newcastle United owner Mike Ashley’s Sports Direct International, also faced disappointing results from an A$3.2m marketing campaign.
Revenue increased 8% to A$123.3mln, but MySale made an underlying pre-tax loss of A$11.4mln against a profit of A$5mln a year ago. Shares fell 1.5p to 51p.
MySale, which has ramped up staffing in the last few years, shed jobs in the first half to offset the lower-than-expected growth. It also ditched the postage promotions and failed marketing drive.
Chief executive Carl Jackson said the group was expecting a better second half after taking action to address the problems.
“Following the challenges of the first half we are now back on track, we have great branded product at great prices and are very confident that the business is well placed to execute its second-half operational plan,” he said.