Sosandar navigated challenges in the first half of the year, marking progress despite an initial sales drop.
- The company reported a 30% decrease in sales, falling to £16.2m from last year’s £22.2m.
- Despite the decline in sales, pre-tax losses improved, reducing to £0.7m from £1.3m.
- Progress marked by the launch of three new UK stores, with plans to expand further in Cardiff.
- Successful third-party partnerships bolstered performance, including collaborations with Next and M&S.
In a challenging first half of the fiscal year, Sosandar experienced a significant sales decline of 27%, with revenue dropping from £22.2 million to £16.2 million. This marked a tough period for the women’s fashion retailer, necessitating strategic adjustments.
Despite the reduction in sales, Sosandar succeeded in narrowing its pre-tax losses. The figures improved from a loss of £1.3 million in the previous year to a lesser £0.7 million in the latest report. This development underscores effective cost management and operational adjustments amidst a difficult retail environment.
Sosandar also marked significant milestones in its physical retail strategy. The company inaugurated its first three stores within the UK, strategically located in Marlow, Chelmsford, and Gateshead’s Metrocentre. In addition to these openings, the company plans further expansion with a new store launch at St David’s shopping centre in Cardiff.
Enhancing its market presence, Sosandar capitalised on robust third-party partnerships during the period. Collaborations with established retailers such as Next and M&S, along with The Iconic in Australia, contributed positively to the company’s performance. The strategy included the opening of a store with Arnotts department store in Dublin, transitioning from initial online sales.
October trading has provided a positive outlook, with sales surpassing previous year figures. However, to reflect the subdued first-half performance, the full-year revenue forecast has been revised down by £5 million, now set at £40 million, though profit expectations remain unchanged.
Sosandar remains focused on expanding its retail footprint while managing financial targets closely.
