Womenswear retailer Sosandar announced a narrowed pre-tax loss for the half-year to £0.7m, compared to £1.3m in the previous period.
- Total revenue decreased from £22.2m to £16.2m as the company transitions away from heavy promotional activities.
- A significant improvement in gross margin to 62.2% from last year’s 55.4% highlights Sosandar’s focus on margin enhancement.
- Strong trading in new physical stores and increased website traffic bolster confidence in the company’s multi-channel strategy.
- The co-CEOs expressed optimism about future growth, underlining their commitment to margin improvement and strategic development.
During the six months leading up to 30 September 2024, womenswear retailer Sosandar reported a pre-tax loss of £0.7m. This marks an improvement from the £1.3m loss recorded in the previous six-month period. The company attributed this improvement to strategic shifts in their sales approach.
Revenue for the half-year was noted at £16.2m, down from £22.2m in the initial half of the year. Sosandar indicated that this decline was expected as it intentionally moved away from extensive price promotions, except during major sales events. This shift is part of an evolved customer engagement strategy aimed at strengthening long-term profitability and brand positioning.
A notable achievement for Sosandar is the enhancement of its gross margin, which increased to 62.2% from 55.4% the previous year. This improvement is a result of prioritising margin enhancement strategies, allowing the company to maintain stable profit expectations despite reduced revenue.
The company experienced strong trading in October across all channels, with revenue showing a positive swing compared to the corresponding period last year. This was buoyed by increased footfall and conversion rates in its newly opened physical stores, which, in turn, drove traffic to their website in these areas.
Sosandar’s co-CEOs, Ali Hall and Julie Lavington, expressed pride in the reception of their new stores and product range. They emphasised the significance of transitioning into a multi-channel retailer, which they believe is a pivotal development in the company’s growth. The feedback from customers has reinforced their confidence in continued margin enhancement and strategic growth initiatives.
Sosandar remains optimistic about future growth and profitability, supported by strategic advancements and strong performance metrics.
