Womenswear brand Sosandar reported a 9% increase in revenue for the year ending 31 March 2024, reaching £46.3m.
The brand unveiled plans to open two new stores in Marlow and Chelmsford, highlighting its continuous expansion.
Sosandar experienced a 9% rise in revenue, driven by strong sales in partywear, dresses, tailoring, and knitwear. Trading with third-party partners remained robust, contributing significantly to the revenue surge. Despite this growth, the company reported a loss of £0.3m for FY24. However, profit before tax improved to £1.0m in the second half, contrasting with a £1.3m loss in the first half of the year.
The company’s gross margin improved to 57.6%, marking a 2.4% year-on-year increase. This enhancement reflects Sosandar’s strategic focus on margin improvement, balancing revenue growth against profitability.
In the upcoming fiscal year, Sosandar aims to sustain its 63.4% gross margin improvement, expecting profit levels to align with forecasts, even with stabilised revenues.
With strong cash generation in the latter half of 2024, Sosandar’s net cash position improved to £8.3m, up 8% year on year.
The brand plans to maintain this healthy cash position by prioritising sustainable growth in gross margins and pre-tax profits, focusing on efficient cash generation.
Sosandar’s co-CEOs emphasised their strategy for FY25, focusing on sustainable growth in several key areas, including gross margin, pre-tax profit, and cash generation.
The company also highlights revenue growth potential from direct and third-party partner sales, alongside new store openings, which are expected to enhance overall brand presence.
Sosandar has announced its first two physical store locations, set to open in Marlow and Chelmsford this September. These stores are part of the brand’s strategy to broaden its market reach.
Positioned in affluent locations, the stores are expected to attract a high concentration of Sosandar’s target customers. The company remains focused on ensuring optimal pricing and location choices.
Co-CEOs Ali Hall and Julie Lavington expressed optimism about Sosandar’s future, citing the brand’s strategic goals.
The brand aims to extend its reach across the UK and internationally, maintaining a strong balance sheet and delivering value to stakeholders through disciplined growth.
Sosandar’s commitment to balanced growth and strategic expansion positions it well for future success, despite immediate challenges. The opening of new stores in strategic locations supports this vision of growth and market presence.
Sosandar’s strategic approach to balancing revenue growth with profitability appears to be paying off. The brand’s new store openings are set to widen its market reach and solidify its presence as a key player in the UK and beyond.
