Sosandar, a women’s fashion retailer, revises its sales forecast, while cutting back on discounts to maintain profitability.
- The company’s pre-tax loss improved to £0.6m in the first half of the year, compared to a £1.3m loss previously.
- Revenue dropped from £22.2m to £16.2m, attributed to a shift away from regular discounts, sticking only to major sale events.
- Despite the reduction in revenue, Sosandar remains committed to achieving a medium-term pre-tax profit of at least £10m.
- The opening of three new retail stores shows positive results, contributing to increased website traffic and in-store success.
Sosandar has strategically revised its sales outlook for the year, reducing the forecast by £5 million. This adjustment aligns with the retailer’s decision to move away from frequent discounting outside major sale events. By focusing on profitability, the company aims to fortify its financial health despite a challenging retail environment.
Sosandar reported a pre-tax loss of £0.6 million for the six months ending 30 September, a notable improvement from the £1.3 million loss in the same period the previous year. This indicates a positive trend towards stabilising financial performance, although the overall revenue experienced a decline.
Revenue for the first half of the year amounted to £16.2 million, down from £22.2 million in 2023. The decline is largely due to the company’s strategic shift away from regular discounting practices, opting to focus on scheduled sale events to attract customers.
Despite the forecasted decrease in revenue, Sosandar remains optimistic about achieving a medium-term pre-tax profit target of at least £10 million. This ambition reflects their strategy to balance growth with improved margins, which has started to show promising signs as seen in their recent performance.
The opening of three new retail stores marks a significant development in Sosandar’s multi-channel retail strategy. The stores have reported strong trading and have significantly boosted footfall and website traffic in their respective localities. This development underscores Sosandar’s transition into a more comprehensive retail approach, enhancing both physical and online shopping experiences.
Sosandar is poised to navigate through recent financial setbacks with strategic adjustments and a focus on long-term profitability.
