Womenswear retailer Sosandar reveals a reduced half-year pre-tax loss.
- The loss of £0.7m marks an improvement from the previous £1.3m loss.
- Total revenue decreased to £16.2m as the company shifts strategy.
- New store openings highlight a move towards multi-channel retailing.
- Management expresses confidence in brand growth and profitability.
Sosandar, a notable name in the womenswear sector, has announced a narrowing in its pre-tax losses for the half-year ending 30 September 2024. The company reported a loss of £0.7 million, a significant improvement from the £1.3 million recorded in the prior six months.
The retailer’s revenue for the period was £16.2 million, down from £22.2 million in the previous half-year. This decline is attributed to Sosandar’s strategic move away from extensive price promotions, favouring major scheduled sales events instead.
Despite the dip in revenue, Sosandar’s focus on margin improvement is evident, boasting a gross margin of 62.2%, up from 55.4% the previous year. This enhancement reflects the company’s priority in margin optimisation, enabling a steady profit outlook for the fiscal year 2025, with anticipated revenue of £40 million.
October trading has shown robust results across all channels, indicating a positive trend in revenue compared to the first half of the year. Notably, the opening of three new physical stores has driven increased customer traffic both in-store and online in those areas.
Co-CEOs Ali Hall and Julie Lavington have expressed their satisfaction with the initial performance of these stores, emphasising the boost in footfall and conversion rates. They stated, ‘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.’
The leadership remains optimistic about the brand’s growth trajectory, maintaining that their strategies around margin enhancement are beginning to bear fruit. Their commitment is to continue aligning with their growth strategy, focusing on profitability and market expansion.
Sosandar’s strategic shifts are paving the way for potential profitability and expansion as it embraces a multi-channel retail approach.
