ONLINE TO OFFLINE: Missguided Ltd.’s concession business continues to grow with its product set to roll out in one Selfridges stores next month, coming on the heels of a recent launch into about a dozen Nordstroms. That will be followed by a second Selfridges rollout in three months and then a third, according to the Manchester, England-based, fast-fashion e-tailer’s founder and managing director Nitin Passi.
Missguided-branded stores are also up for consideration, he said. “As an online brand, it’s hard for our customers to touch and trust our product,” Passi said. “The biggest reason [for brick-and-mortar] is brand awareness.”
Missguided designs about 95 percent of its product in-house with manufacturing split about even between the U.K. and China. It caters to a customer base ranging in age from 16 to 35.
The company’s strategy with its recent entrance into Nordstrom stores, located mostly on the West Coast, is part of its bid to grow the U.S. business, where it has a New Jersey return center. Passi said he’s also eyeing a U.S. office this year, but hasn’t decided on location.
The U.S. currently accounts for about 7 percent of the company’s overall sales and Passi said it will grow closer to 10 percent this year through a combination of the Nordstrom in-store presence and an advertising campaign launching in May.
Missguided’s revenues for the 12 months ended in March rose 69 percent to $127 million. The company notched a profit of $7.5 million during the same period. It’s projecting about 95 percent revenue growth for this fiscal year, according to Passi.
Part of that growth will also come from category expansion, beginning with lingerie in the next three to four months followed by nightwear and maternity. Missguided recently entered the plus-size and activewear markets.
Missguided competes with companies such as Asos and Boohoo, the latter of which is set to make its own push into the U.S. market this year beginning with a campaign launch this month.