Sosandar is poised for growth as it ventures into physical retail spaces.
- Sosandar reported a 9% increase in revenue, achieving £46.3 million for the fiscal year ending March 2024, although faced a pre-tax loss of £300,000.
- Focusing on profitability, the company saw a significant improvement in margins, despite reduced demand on its own website.
- Sosandar is opening its first two physical stores in Marlow and Chelmsford this September, aiming for 50 locations in five years.
- Robust performance continues through third-party marketplaces, with promising international prospects in Australia.
Sosandar has experienced a fiscal year of contrasts. While the company reported a 9% rise in revenue to £46.3 million for the year ending March 31, 2024, it also faced a pre-tax loss of £300,000, a decline from the previous year’s profit. The results are attributed to strategic shifts, such as altering focus from volume sales through price promotions to enhancing profit margins, as emphasized by Chief Financial Officer Steve Dilks.
Dilks described the year as “a period of two halves,” citing a first-half loss of £1.3 million, followed by a second-half profit of £1 million due to a strategic reduction in price promotions. By prioritizing profitability over aggressive customer incentives, Sosandar managed to achieve substantial margin gains, overshadowing a slight dip in demand through its online platform. Dilks remains optimistic about returning to growth in the coming year.
The brand’s proactive approach is further demonstrated through the announcement of its first physical stores set to open in Marlow and Chelmsford this autumn. Co-CEO Ali Hall remarked that the choice of store locations is informed by areas where the brand already has a strong customer following and foot traffic, often near other premium retailers. The ambition is clear, with a target of 50 stores within five years.
In addition to its physical expansion, Sosandar sustains strong trading across third-party marketplaces, such as Next, Marks & Spencer, and Very. Co-CEO Julie Lavington noted the successful launch with The Iconic marketplace in Australia, achieved without any formal marketing. This success hints at substantial international growth potential as Sosandar extends its partnerships globally.
Sosandar’s strategic focus on profitability and expansion into physical retail promises a robust trajectory for future growth.
