Sosandar net revenue rises 72%, following partnership with JD Williams

Sosandar has reported a 72% increase in net revenue to £20.9 million for the six months ending 30 September 2022.

Gross margin was 54.4%, compared to 56.5% last year, which the company attributed to a more normal post-pandemic trading period, with a planned end of season sale in August.

Net cash totalled £4.2 million, against £7 million the year before. This reflects a planned earlier delivery of Autumn stock and importing more stock via lower cost sea freight, which accelerates use of cash.

The number of online orders at Sodandar increased by 43% to 347,137, of which 80,935 were new orders and 266,202 were repeat orders. In addition, average order frequency was up 8%, website visits up 25% to over 7.7 million and active customers up 33% to 254,601.

Sosandar's strategy to accelerate sales growth by developing key product lines has been considered successful, with all identified lines meeting or exceeding the brand's expectations. Across the period, every product category showed growth, with holiday and beachwear, formal tailoring and dresses performing "exceptionally well".

Looking ahead, the brand said external economic uncertainty remains, but it is confident that it can continue to navigate the challenging conditions and take mitigating actions as appropriate to protect margins and profitability.

In order to meet demand across all sales channels and to ensure that it has high levels of stock ready for the AW season, Sosandar has taken steps to increase levels of inventory which is reflected in its current cash position. The brand emphasised that early autumn trading has been positive with particular success in key growth areas of outerwear, knitwear and partywear.

Ali Hall and Julie Lavington, Co-CEOs of Sosandar, said: "We are extremely pleased to have delivered a strong performance in the first half of the financial year. Our well-planned and agile approach, together with our distinctive product range and effective communication strategy, has enabled us to deliver a significant increase in revenue, as well as a full period of profitability.

"We continue to invest and expand our product range, offering our customers an even greater selection of on-trend, affordable, long lasting, lifestyle appropriate clothes. In addition, our performance with our selected third-party partners continues to go from strength to strength - and we are delighted to have signed an agreement with N Brown."

The news comes after the launch of Sosandar's new wholesale partnership with N Brown Group's JD Williams, which commenced in September 2022. The brand said that selling its products through JD Williams allows Sosandar to increase its reach and deliver profitable growth.