The company reported robust revenues for H1 and Q3, with autumn trading surpassing expectations and November marking a record month of trading. In a strategic move, the brand conducted a trial reduction in price promotional activity, leading to a material improvement in average order value and margin. While anticipating a decline in site visits and orders, the brand is sacrificing short-term profits to enhance sales quality in preparation for its foray into physical retail.
The trial aligns with Sosandar’s long-term objective of achieving £100 million+ revenue and a 10% margin by minimizing discounting. In H1, net revenue witnessed a 6% growth, reaching £22.2 million, accompanied by an increase in the gross margin to 55.4%. The reported loss before tax of £1.3 million was influenced by lower revenue following the promotional trial and increased staff costs for future growth.
Sosandar’s successful partnership with e-tail platform Global-e facilitates cost-effective transactions and order fulfillment to over 60 countries. The brand’s positive trajectory is further supported by strong sales across various categories, successful collaborations, and the launch of a mobile app with 70,000 downloads. The company remains optimistic about future growth and profitability, emphasizing a focus on higher-quality sales in the competitive fashion sector.
