Womenswear brand Sosandar has reported a £0.7 million pre-tax loss in the six months to 30 September 2024, compared to a loss of £1.3 million in the first half of FY24.
The company said this is as a result of margin enhancement and continued cost management, with a focus on sustained profitability and “transitioning to a true multi-channel retailer” with the opening of its first three physical stores in the UK.
Sosandar saw its revenue decline to £16.2 million from £22.2 million the year before, as it continues to move away from price promotional activity outside of the major scheduled Sale times.
A gross margin of 62.2% – versus 55.4% in the previous year – reflects Sosandar’s margin enhancement prioritisation.
A highlight of the period has been the opening of its own stores, currently in Marlow, Chelmsford, and the Metrocentre in Gateshead. It is also soon to open in St David’s shopping centre in Cardiff.
The locations were “carefully selected for being affluent, thriving locations where Sosandar customers over-index”.
Sosandar’s multi-channel model enables it “to capture part of the £60 billion per annum clothing market transacted in physical stores in the UK and will accelerate profitable growth”.
Ali Hall and Julie Lavington, Co-CEOs of Sosandar, said: “The opening of our first three own stores marks a key point in the company’s development, as we move towards becoming a true multi-channel retailer.
“We are incredibly proud of seeing the Sosandar brand on thriving high streets and are delighted with the reception we have received so far. The feedback on our product range and store environment from both new and existing customers has been fantastic, which shows the power of the Sosandar brand.
“We have hit the ground running with strong footfall and conversion, and have also seen a demonstrable uplift in traffic to our website in the areas where our stores are located.
“We remain committed to delivering in line with our growth strategy, focusing on margin enhancement to improve profitability, and we are already seeing the results of this in our performance. This has continued into October and we remain excited for what lies ahead for Sosandar.”
FY25 revenue expectations have been moderated to £40 million, and pre-tax profit expectations are unchanged “given continuing margin strength”.
