Sosandar, a women’s fashion retailer, has managed to narrow its losses despite a significant drop in sales for the first half of the fiscal year.
- The company’s pre-tax loss decreased from £1.3m to £0.7m as it navigated a 27% decline in first-half sales.
- Revenues fell to £16.2m, down from £22.2m the previous year, reflecting the challenges faced during this period.
- New store openings in the UK, including Marlow and Chelmsford, signal Sosandar’s strategic shift towards becoming a multichannel retailer.
- Executives Ali Hall and Julie Lavington remain optimistic, citing positive feedback and increased website traffic as indicators of brand strength.
In a challenging first half of the fiscal year, Sosandar, the women’s fashion retailer, reported a decline in sales by almost 30%. Despite this downturn, the company successfully reduced its pre-tax losses to £0.7 million, improving from the £1.3 million loss recorded during the same period last year. The revenue drop was notable, with figures falling to £16.2 million compared to £22.2 million previously.
Interestingly, the company has embarked on an ambitious expansion plan. It opened its first three UK stores located in Marlow, Chelmsford, and Gateshead’s Metrocentre, with a new location planned at St David’s shopping centre in Cardiff. This move marks a significant development in Sosandar’s journey towards establishing a strong multichannel presence. According to the company, the opening of these stores has already been met with encouraging responses from both new and existing customers.
Moreover, Sosandar’s third-party partnerships have shown strong performance during the period, particularly with renowned retailers such as Next, M&S, and The Iconic in Australia. Additionally, a new store was inaugurated at Arnotts department store in Dublin following its initial online sales success through its website. These partnerships are pivotal in broadening the brand’s reach and enhancing market presence.
Despite the weak sales performance earlier in the year, Sosandar has observed improved trading in October, with sales surpassing those of the previous year. In response to the first half’s challenges, Sosandar has adjusted its full-year revenue forecast, reducing it by £5 million to £40 million. However, the company’s profit expectations remain consistent, underscoring a cautious optimism for the remainder of the year.
Co-chief executives Ali Hall and Julie Lavington acknowledge this pivotal moment, noting the substantial increase in footfall and conversion rates at their new stores. They have reported substantial growth in website traffic in areas surrounding these new locations, attributing this to heightened brand recognition. The executives expressed confidence in the company’s trajectory, buoyed by strong consumer feedback and demonstrated brand loyalty.
Sosandar continues to adapt strategically, showing resilience in the face of sales challenges while leveraging new opportunities for growth.
