Sosandar, the renowned womenswear brand, has announced its expansion with new store locations and reported notable financial performance.
- The brand’s revenue saw a 9% increase, reaching £46.3 million by the end of March 2024, driven by sales in partywear, dresses, and knitwear.
- Despite reporting a small loss for the year, Sosandar experienced a profitable second half, demonstrating financial resilience.
- The introduction of stores in Marlow and Chelmsford marks a strategic move to enhance customer reach across the UK.
- Looking forward, Sosandar aims to sustain growth in gross margin and cash generation, focusing on strategic expansion and partnerships.
Revenue for Sosandar increased by 9% to £46.3 million as of 31 March 2024, supported by strong sales in partywear, dresses, tailoring, and knitwear. The brand noted a persistent strength in trading with third-party partners. However, the year also ended with a £0.3 million loss, albeit showing an upswing in profit before tax in the latter half to £1.0 million, recovering from a £1.3 million loss in the first half.
The gross margin for Sosandar improved significantly over the period, rising to 57.6%, marking a 2.4% year-on-year increase. In the second half of 2024, the brand had a robust cash generation, resulting in an enhanced net cash position of £8.3 million, reflecting an 8% growth from the previous year.
Future projections for the first quarter of FY25 remain cautious, as the brand chooses not to pursue revenue growth at the expense of margins. The 670 basis points increase in the gross margin to 63.4% is an indicator of expected steady pre-tax profit levels, despite a likely alignment of revenues with the prior year.
For the upcoming fiscal year, Sosandar’s primary focus will be on sustaining gross margin growth and reinforcing cash generation, while maintaining a strong balance sheet. The co-CEOs expressed optimism about revenue growth via their website, enhanced third-party collaborations, and the opening of brick-and-mortar locations.
Sosandar has identified its initial two store locations, with openings planned in Marlow and Chelmsford. These locations were carefully selected for their affluent demographics, aligning with Sosandar’s market strategy. As emphasised by the co-CEOs, ‘We look forward to the official opening of them over the next few months, and with others to come.’
Sosandar’s strategic focus on margin enhancement and expanding its physical presence positions it for promising future growth.
