Revenues up at Sosandar while EBITDA losses narrow

Sales at Sosandar leaped 52% to £4.2m in the six months to 30 September compared to the first half of the year as the online women’s fashion brand benefitted from a 26% increase in new customers and 48% surge in orders over the period.  

The company, which has recently launched on John Lewis and Next’s online platforms, also announced a gross profit of £2.24m, up 48% on the prior year, while EBITDA loss narrowed to £1.02m – down from £2.71m in the first half of the year.

Gross margin inched down marginally to 52.3%, driven by actions taken during initial lock-down, while net cash was reported at £4.30m as of 30 September.

The growth in customers and orders was also attributable to a “rapid expansion of product range into more casual styles with great successes seen in denim, loungewear and knitwear,” the brand said.

It also reported a “significant improvement in marketing return on investment (ROI) with new customer numbers up by more than a quarter, despite a 47% cut in marketing spend.

Monthly sales for September to November also increased by 115% compared to the average for the prior five months, while a new daily record for revenue was hit in November.

Commenting on the results, co-chief executives Ali Hall and Julie Lavington said: "We are delighted to be reporting strong revenue growth and a significant improvement in EBITDA despite one of the most challenging periods ever for the retail industry.

“It is a real achievement and testament to the fantastic team we have built at Sosandar, that we have delivered increased sales, better cost efficiency, better engagement with customers, grown our database and quickly expanded our product range, whilst at the same time significantly reducing marketing spend.

“From September onwards, we cautiously increased expenditure on new customer acquisition and trading has quickly gained momentum.

“We are very pleased to be exceeding the record highs seen last autumn on half the marketing spend.

“As one would expect, we are now selling a much wider range of casual and at-home product than before.

“However, the Sosandar customer has also not lost a taste for glamour, with sales of sequins, leather, fur coats and knee boots remaining strong.”

“Looking ahead, whilst there remain short term uncertainties due to Covid-19, our long-term focus has not wavered and continues to be on the development of our product, infrastructure and service, alongside most importantly, further building our customer base.”

“The scale of our opportunity is substantial and we are well placed to deliver on our ambition for Sosandar to be a long-term, sustainable success."