Sosandar embarks on a promising journey with plans to open its first physical stores this autumn.
- The womenswear brand reported a 9% revenue increase, reaching £46.3 million by March 2024.
- Despite a revenue boost, the company faced a pre-tax loss of £300,000 last year.
- Sosandar’s strategy includes reducing price promotions to enhance profitability margins.
- Future growth is anticipated with expectations of £54.6 million in revenue by March 2025.
Sosandar, the distinguished womenswear brand, is set to expand its presence by opening its inaugural physical stores this autumn. The brand’s decision to step into physical retail comes amid a financial update that showcased a 9% revenue increase to £46.3 million for the year ending 31 March 2024. Despite this growth, the company reported a loss before tax of £300,000, a notable decline from the previous year’s £1.6 million profit, Sosandar’s first profitable year.
The brand’s chief financial officer, Steve Dilks, described the financial year as a “period of two halves”, highlighting an initial loss of £1.3 million which transitioned into a £1 million profit in the latter half, as Sosandar shifted focus from aggressive price promotions to enhancing profit margins. Although demand on Sosandar’s website showed signs of suppression, the strategic move resulted in substantial margin gains that outweighed the decreased demand.
Looking ahead, Sosandar projects a revenue increase to £54.6 million for the fiscal year ending 31 March 2025, aligning with market predictions and anticipating a pre-tax profit of £1 million. A significant driver of this optimistic outlook is the reported improvement in gross margin during Q1 of FY25, which rose by 670 basis points to 63.4% compared to the same period last year. This was primarily attributed to an 80% reduction in price promotions on their website.
Co-CEO Ali Hall elaborated on the brand’s strategic selection of store locations, earmarking Marlow and Chelmsford as the initial sites for Sosandar’s brick-and-mortar expansion. The site selection is driven by areas where the brand’s customer base already shows a strong presence and includes thriving, upmarket locations with substantial footfall. The planned stores aim to further capitalise on scale efficiencies by potentially lowering stock costs through bulk purchases.
Additionally, Sosandar is targeting a significant expansion with plans to open up to 50 stores in the foreseeable future. The brand continues to enjoy robust sales via third-party marketplaces such as Next, Marks & Spencer, and Very, and looks forward to enhancing its international footprint, as evidenced by successful initial sales in Australia with The Iconic marketplace.
Co-CEO Julie Lavington expressed optimism about partnerships beyond the UK, noting positive outcomes from their Australian market entry despite a lack of initial marketing efforts. This success bolsters Sosandar’s confidence in pursuing additional international partnerships and expanding their global reach.
Sosandar’s strategic initiatives and financial management underpin its optimistic outlook for future profitability and growth.
