Sosandar, a womenswear retailer, reported its financial results for the six months ending 30 September 2024.
- The company posted a reduced pre-tax loss of £0.7 million, improving from the previous period’s loss of £1.3 million.
- Revenue saw a decline to £16.2 million, attributed to a shift away from frequent price promotions.
- Gross margins improved substantially, reaching 62.2%, up from 55.4% last year.
- Sosandar’s new physical stores are experiencing strong performance, contributing positively to sales.
Sosandar, a prominent womenswear retailer, has released its financial results for the six months concluding on 30 September 2024. The company has managed to narrow its pre-tax losses to £0.7 million, marking a significant improvement from the £1.3 million loss recorded in the previous six-month period. This improvement comes as the retailer transitions away from extensive price promotional activities, focusing instead on carefully scheduled major sale events.
Despite this progress, the company’s total revenue decreased to £16.2 million, down from £22.2 million in the prior half-year. This reduction in revenue is a direct result of Sosandar’s strategic decision to move away from frequent price discounting, which had been a sales driver in earlier times.
In terms of profitability, Sosandar’s gross margin saw an increase, improving to 62.2% compared to 55.4% in the previous year, reflecting the company’s prioritisation of margin enhancement. The CEO pointed out that, although revenue expectations for FY25 have been moderated to £40 million, pre-tax profit expectations remain unchanged, supported by strong margins, evolving strategies for customer engagement, and prudent management of overheads.
The brand has reported strong trading momentum in October, surpassing the previous year’s figures. This positive trend encompasses all operational channels, signifying a robust start to the latter half of the fiscal year. Moreover, Sosandar’s newly opened physical stores have shown promising results, significantly boosting foot traffic and online traffic in the respective areas.
Co-CEOs Ali Hall and Julie Lavington expressed optimism about the brand’s future, highlighting the successful launch of their first three physical stores as a milestone in their development towards becoming a multi-channel retailer. They emphasised the positive reception of their products and shopping environment, both from new and returning customers, demonstrating the strength of the Sosandar brand.
Sosandar remains poised for growth, focusing on strategic initiatives to enhance profitability and expand its market presence.
