Forecast: Sosandar has upheld its annual outlook despite swinging to a first-half loss
Sosandar swung to a loss in the first half, but the fashion retailer anticipates a strong Christmas period after achieving record trading last month.
The womenswear specialist revealed its turnover exceeded £10million over October and November, a 16 per cent increase on the equivalent period in 2022.
Sales were boosted by bumper demand through third-party channels, including Next and Marks & Spencer, and the firm’s intended cutback in website price promotions.
These factors also drove Sosandar’s performance in the six months ending September, when its revenue expanded by 6 per cent to £22.2million.
All product ranges achieved growth, supported by steep demand over the summer for occasion wear, beach clothing and swimsuits.
Sosandar said planned discount activity led to gross margins and average order values rising as expected, although it also caused the number of site visits to dip and order volumes to decline by a fifth.
Combined with higher operating costs, mainly from hiring more staff and partners retaining significant commissions, Sosandar fell from a £77,000 half-year profit last year to a £1.35million loss this time around.
Nonetheless, the company expects to be profitable for the full year and says current trading is commensurate with market forecasts.
As Christmas approaches, Sosandar has observed ‘extremely strong sales’ across all product categories, especially partywear, dresses, tailoring and smart trousers.
‘Looking ahead, we believe that the future is very bright as we take the Sosandar brand to more customers across the UK and worldwide,’ said Ali Hall and Julie Lavington, Sosandar’s co-founders and joint chief executives.
The Cheshire-based group recently struck third-party partnership agreements with Australian online sports retailer The Iconic and Canadian firm The Bay.
Sosandar also plans to open its first stores in spring 2024, which it says will be in ‘affluent towns with thriving high streets where Sosandar customers over-index.’
Headquartered in Wilmslow, the company is one of the UK’s fastest-growing fashion brands, scoring more than £42million in sales during the last financial year.
Television presenters Holly Willoughby, Susanna Reid, Christine Lampard, and Heart Breakfast radio presenter Amanda Holden count among Sosandar’s celebrity fans.
Sosandar shares were 2.5 per cent higher at 14.66p on early Tuesday afternoon, although they have slumped by over a third in the past 12 months.
