Despite facing challenges, womenswear retailer Sosandar shows resilience with narrowed losses and strategic initiatives.
- The company recorded a pre-tax loss of £0.7m for the half-year, recovering from a £1.3m loss in the previous period.
- Sosandar sees a positive shift in trading dynamics as it moves away from price-driven promotions.
- The introduction of three new stores has contributed to increased brand visibility and customer traffic.
- Sosandar’s leadership remains optimistic about the brand’s growth and profitability in the foreseeable future.
The women’s fashion retailer Sosandar has demonstrated progress in its financial performance despite reporting a pre-tax loss of £0.7 million for the first half of the year, a significant improvement from a previous £1.3 million loss. The company is intentionally shifting away from excessive price promotional activities, focusing instead on scheduled sale events to stabilize finances. Total revenue for the period stood at £16.2 million, a decline from £22.2 million, indicating the challenges inherent in this financial strategy shift.
Sosandar has adjusted its revenue expectations for FY2025 to £40 million, with pre-tax profit expectations remaining stable. This outlook is supported by strong gross margins of 62.2%, a notable rise from last year’s 55.4%. The improved margins reflect the company’s emphasis on enhancing profitability through a refined customer engagement strategy and prudent overhead management. Trading in October has started robustly, outperforming last year’s figures and marking a significant improvement from the first-half performance.
A crucial element in Sosandar’s latest strategy is the opening of three physical stores, which have generated strong trading results and enhanced traffic to their website in surrounding areas. This expansion marks a pivotal step in the company’s evolution into a multi-channel retail presence. The co-CEOs, Ali Hall and Julie Lavington, expressed their enthusiasm, highlighting the positive reception from both new and existing customers and the resultant boost in brand perception.
Sosandar’s leadership is steadfast in executing its growth strategy, prioritizing margin improvement to uplift profitability. The brand’s CEO team underscored their commitment to this strategy by reporting promising results from these initiatives into October and anticipated further success. The company remains focused on long-term growth opportunities, leveraging current successes to build future prosperity.
In summary, Sosandar exhibits resilience and strategic foresight as it narrows losses and positions itself for growth.
