The Iconic narrowed losses in 2017 as it looks to reach profitability
The Iconic narrowed its losses in 2017 to $9.2 million, as it progresses towards becoming a profitable company.
The Australian pureplay fashion retailer recorded $267.8 million in sales and said it was cash flow positive at the end of last year, according to an account filed recently with ASIC.
That translates to a 35 per cent increase over its 2016 sales of $189.4 million.
The retailer narrowed its losses from $10.8 million in 2016 to $9.2 million in 2017, after a one-off charge of $5.4 million for the write-down of assets including but not limited to inventory and prepayments.
This was helped by slower growth in the cost of sales and marketing, which increased just 14 per cent from 2016. Other expenses, however, increased at the same or faster rate as The Iconic’s revenue did.
The cost of distribution rose more than 30 per cent from 2016, and the cost of administration rose more than 50 per cent from 2016.
Since launching in 2011, The Iconic has accumulated losses of $152.6 million and continues to rely on parent company Global Fashion Group, which also operates Zalora in Southeast Asia, for funding.
The company said it will continue to pursue its objective of increasing its market share and profitability during the next financial year.