Sosandar has experienced a notable decrease in its first-half sales, marking a 27% drop which has impacted its full-year revenue forecast.
- The fashion retailer managed to cut its pre-tax losses, demonstrating its resilience amidst challenging market conditions.
- Sosandar is expanding its physical presence with the opening of new stores in Marlow, Chelmsford, and Gateshead.
- Collaborations with third-party retailers like Next and M&S have shown promising results during this period.
- Despite weak first-half sales, recent trading activity in October indicates a potential upturn for the retailer.
Sosandar reported a significant decrement of 27% in sales during the first half of the year, where revenues dropped from £22.2 million to £16.2 million. The company has responded to this financial challenge by strategically reducing its pre-tax losses from £1.3 million in the previous year to £0.7 million for the current period.
Even with waning sales figures, Sosandar has been proactive in expanding its retail footprint. The opening of new stores in Marlow, Chelmsford, and the Metrocentre in Gateshead marks a pivotal shift towards growing their presence in physical retail markets. This move signifies the company’s dedication to becoming a multichannel retailer, as expressed by the co-chief executives.
Further aiding its performance, Sosandar has leveraged productive partnerships with prominent retailers such as Next, M&S, and The Iconic in Australia. These collaborations have bolstered the brand’s reach and market penetration, contributing positively to its fiscal health.
In reaction to the downturn in first-half performance, Sosandar has revised its full-year revenue forecast, lowering it by £5 million to a projected £40 million. Despite this reduction, their profit expectations remain unchanged, indicating an optimistic outlook for recovery in the subsequent months.
October trading activities have commenced on a promising note, suggesting an improvement in sales relative to the preceding year. This development may signal a potential recovery trajectory for Sosandar as it continues to adapt and refine its business strategies.
Sosandar remains resilient by refining strategies amidst sales challenges, indicating potential growth in coming months.
