Sosandar posts strong sales and margin growth
AIM-listed women's online fashion brand Sosandar posted sales up 228% to £4.44m in the year ending 31 March 2019.
The fledgling brand, which positions itself as a trend-led site for women who have outgrown the fast fashion etailers, improved its gross margin to 55.5% (up from 49.4%) and posted an EBITDA loss of £3.49m (down from £6m).
During the year Sosandar processed 102,967 orders, up 224% and grew its customer base by 95% to 105,756. Active customers increased by 185% to 62,214. Its average order value increased 10% to £103.19 but returns rate also increased to 50% from 44%.
Co-founders and joint CEOs Julie Lavington and Ali Hall said they were "delighted to be reporting a year of exceptional growth along with significant operational progress".
"We have expanded our product range and invested in highly effective customer acquisition, which together are driving ever growing repeat rates. We continue to inspire and excite our customers and once we recruit customers they are proving to be incredibly loyal and highly engaged with the brand, which will fuel future growth for the business.
"We are continuing to invest in the expansion of our product range, most recently making investment into specialist areas of footwear, accessories, knitwear and denim. Our social channels continue to expand rapidly, and we have seen an ever-growing army of high-profile celebrities wearing our clothes such as Amanda Holden, Kelly Brook and Natalie Pinkham. We have also been featured regularly in the national press from the Daily Telegraph to the Daily Mail as well as being featured regularly on ITV," the pair said.
Sosandar was launched by Lavington and Hall, formerly of Look magazine, in 2016. It launched on AIM in September 2017 after it was reversed into AIM-listed cash shell Orogen. Its shares closed this evening at 15.5p, down 20%.