The Iconic reports progress on road to profitability
The Iconic has reported $392.19 million in revenue in 2018 (AU$370.5m), a 38.3 per cent increase from the previous year, according to documents lodged with the Australian Securities and Investments Commission on Friday.
Posting a net loss of $19.37 million (AU$18.3m), the retailer said it is continuing to make progress on its goals of increasing market share and achieving profitability during the next financial year.
The Iconic previously revealed that it achieved double-digit market share and record traffic in 2018, thanks to an expanded range, with more than 1000 brands and 60,000 products available.
The retailer’s net loss for the year ended December 31, included a charge of $15.88 million (AU$15m) relating to a cash award scheme. Excluding that charge, the company reduced its net loss by nearly two thirds from 2017 to $3.18 million (AU$3m).
The loss in 2018 was driven by increased sales and marketing costs, which were up 33.6 per cent, and expenses related to distribution, which were up 50 per cent after doubling its distribution centre capacity in the year.
Administration expenses were also up 55 per cent, with The Iconic now employing 1000 people.
The Iconic received a $18.74 million (AU$17.7m) cash injection from its parent company, Global Fashion Group, which also owns Zalora, an online fashion site in Asia.
This story originally appeared on sister site Inside Retail Australia.