Sosandar reports record results and first two positive EBITDA months
Sosandar, the fast-growing digital-first womenswear brand, has revealed record autumn trading with revenues up 184% at the half-year point and its first two positive EBITDA months during October and November.
The AIM-listed business said H1 revenue hit £12.2m, which is higher than the entirety of its previous financial year, while EBITDA over the six-month period improved to a £0.99m loss, against a comparative period in the prior year (H1 FY2021: £1.02m loss), where spending was significantly reduced in response to the pandemic. Gross margin improved to 56.5% compared to 52.3%.
Active customers were up 41% to 191,000 while conversion rate improved to almost 4% from 2.58% a year ago. Strong trading on its website was also replicated at its third party partners, John Lewis, Marks & Spencer and Next.
Co-founders and CEOs Julie Lavington and Ali Hall said the business had anticipated strong demand once Covid restrictions were lifted and had ordered autumn stock early, thus avoiding the supply chain disruption issues experienced by many in the sector.
"We are delighted to be reporting such strong revenue and active customer growth as well as reaching a significant milestone in delivering two EBITDA positive months in October and November. This pivotal achievement reflects customer engagement KPIs being substantially ahead of the prior year, including the increase in our number of active customers, repeat customers and conversion rates, highlighting the effectiveness of our marketing strategy, diverse product range and operational excellence.
"Anticipating high demand as restrictions were eased, we decided to bring in stock early for autumn, including partywear, coats, boots, and knitwear. This decision has allowed us to meet the exceptionally strong demand for our product with sequins, Christmas jumpers and fur coats emerging as best sellers.
"Looking ahead, whilst we are cognisant of ongoing supply chain challenges, we continue to mitigate the impact and our long-term growth strategy remains unchanged. The Company is trading ahead of market expectations for the full year and we look forward to a successful second half and beyond."
Expectations for the year ending 31 March 2022 are currently revenue of £24.4 million and an EBITDA loss of £1.2 million.