Sosandar reports year on year growth with significantly reduced losses

Sosandar, the online women's fashion brand, has reported sales up 54% in Q1, and says that the "resilient" performance seen in April and May has continued into June.

As a result of the growth in sales together with a significantly decreased marketing spend, the Company saw losses in the period from 1 April 2020 to 30 June 2020 reduced by 70% compared to the same period in the prior year.

In June, the Company's monthly sales performance improved again, with a strong gross margin from a shift back to full price purchases following some promotion and discounting in early April. As a result, the Company recorded results very close to breakeven in June.

The Q1 results have been driven by the shift in strategy implemented by the company in response to COVID-19 and the associated lockdown. This included diversified product ranges adapted to changes in customer demand and an industry wide growth in loungewear.

Sosandar also reported it has significantly reduced marketing spend, with increased frequency and a focus on high quality, relevant communications successfully engaging with the customer base and converting prospects that have been established over time. As a result, it has seen a 24% increase in new customers over the quarter.

The Company expects to announce its financial results for the year ended 31 March 2020 in August and will confirm the date in due course.

Last month, it was reported that Sosandar's sales were up during April and May as non-essential retail was locked-down in the UK.

The AIM-listed business said orders had grown 44% year-on-year while revenue was up 62%. New customer acquisition had grown 15% and it had reduced returns by 33%. The fast-growing, early-stage business had also cut marketing spend by 69%.

The company also announced it had signed deals with Next and John Lewis for AW20.