Sosandar sees yearly revenue increase 35%

Sosandar

Sosandar, the online women’s fashion brand, has reported a year of strong revenue growth, with revenue increasing 35% to £12.2 million (compared to £9.03 million in 2020).

In a trading update, the AIM-listed business said it saw stable gross margin of 48.0% (compared to 48.5% in 2020), despite the effective use of promotional activity during lockdown periods.

It also reported a narrowed EBITDA loss to £2.92 million (£7.66m in 2020) as a result of increasing scale, improved ROI on marketing and ongoing focus on cost management.

As well as selling via its own online channel, Sosandar is sold through Next and John Lewis and this year joined the Marks & Spencer third-party brand line-up, reporting initial sales via M&S had been “excellent”.

The brand targets women who have grown out of fast-fashion retailers but who still want to buy trend-led clothing. It said it had been able to pivot its offer to respond to the change in demand due to the pandemic and that loungewear, knitwear, denim and outerwear have all performed particularly well. In January 2021 the company launched active and leisure wear, with strong sales results.

The company also reported an increase in customer engagement, with a 40% rise in repeat order and an improvement to average order frequency of 23%.

Strong conversion rate of 3.09% were driven by the expanded range, which it reports are “resonating well with customers”.

In May 2021, Sosandar announced the appointment of Steve Dilks to the Company’s Board as Chief Financial Officer, who joined the company last September as Finance Director, having previously spent 11 years at outdoor apparel business Regatta.

Ali Hall and Julie Lavington, Sosandar’s Co-CEO’s, commented: “We are delighted to report a year of very strong growth and performance alongside considerable operational progress. We have continued to expand and further diversify our product range, using targeted spending to maximise ROI and demonstrated strong cash retention, resulting in a significant growth in revenue and reduction in EBITDA losses. The performance of our team over the last year has been truly exceptional and we are incredibly proud of what they have achieved.

“Whilst there is wider uncertainty around the ongoing effects of the pandemic, we are incredibly optimistic about what the future holds for Sosandar. Following the fundraise in May, we now have the financial flexibility to allow us to accelerate growth with third parties. Alongside this, we delivered a record first quarter of trading in Q1 FY22 with strong sales in colourful dresses, tops and denim as our customers prepare for the summer months.

“With a clear growth plan and numerous opportunities ahead of us, we are now well placed to accelerate towards profitability.”