Sosandar sees revenue drop but returns to profit as it curbs promotional activity

Womenswear brand Sosandar has reported a pre-tax profit of £500,000 for the year ending 31 March 2025, versus a loss of £300,000 in FY24.

That fell 50% short of the pre-tax profit that was reported to be expected in January for FY25, with "February very much the outlier with trading softer than was anticipated".

However, it was also a substantial positive swing from the £700,000 pre-tax loss in the first half of FY25, with revenue of £37.2 million for FY25 versus £46.3 million for FY24 reflecting the "continued transition away from price promotional activity".

There was also improved gross margin of 62.5%, up from 57.6% in the prior year, again as a result of a continued focus on margin enhancement and less discounting.

In the last financial year, Sosandar opened its first six stores including in Bath and Harrogate - both of which opened in February 2025. In-store sales have been "in line with expectations" with approximately 60% of purchases coming from new Sosandar customers.

The store openings have also had a knock-on effect of online sales, with a "demonstrable uplift in traffic and conversion" on the brand’s website in the areas where the stores are located.

The momentum seen in March 2025 has continued into the new financial year with "performance in April to date ahead of April 2024".

Sosandar is also seeing success through third party partners as it looks ahead to its first licensing agreement with NEXT on a homeware range – set to launch in autumn 2025.