Sosandar’s losses narrow as it focuses on margin enhancement to improve profitability
Sosandar has seen its first half revenue decline to £16.2 million from £22.2 million a year earlier as it focuses on margin enhancement to drive profitable growth.
In the six months to 30 September, the women’s fashion retailer posted a smaller pre-tax loss of £0.7 million compared to loss of £1.3 million at the same time in the prior year.
A highlight of the period was the opening of the retailer’s first three physical UK stores in Marlow, Chelmsford and Gateshead’s Metrocentre. It is also planning to launch a store at St David’s shopping centre in Cardiff.
Ali Hall and Julie Lavington, co-chief executives of Sosandar, said: “The opening of our first three own stores marks a key point in the company’s development, as we move towards becoming a true multichannel retailer.
“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.
“We have hit the ground running with strong footfall and conversion, and have also seen a demonstrable uplift in traffic to our website in the areas where our stores are located.”
Sosandar benefited from a strong performance of third-party partnerships in the period, including Next and Marks & Spencer in the UK and The Iconic in Australia. The retailer also launched a store with Arnotts department store in Dublin after initially selling online through the company’s website.
Sosandar said trading in October has started well with revenue ahead of last year. Due to its continued prioritisation of profitability at this stage of its development, the retailer is moderating its full year revenue expectation to £40 million although its profit expectations remain unchanged.
Hall and Lavington added: “We remain committed to delivering in line with our growth strategy, focusing on margin enhancement to improve profitability, and we are already seeing the results of this in our performance. This has continued into October and we remain excited for what lies ahead for Sosandar.”
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