Sosandar reports a significant revenue increase amidst its strategic expansion.
- The womenswear brand has posted a 9% rise in revenue, totalling £46.3m for the fiscal year ending 31 March 2024.
- Despite experiencing a minor financial loss, the brand’s gross margin improved to 57.6%.
- Two new store locations in Marlow and Chelmsford have been confirmed, opening in September.
- The brand plans a focus on sustainable growth in FY25, with no aggressive revenue pursuits planned.
In an impressive financial update, Sosandar, a prominent womenswear brand, reported a 9% rise in revenue during the fiscal year 2024, reaching £46.3m. Sales in categories such as partywear, dresses, tailoring, and knitwear particularly contributed to this growth. The brand continues to maintain robust trading partnerships with third-party retailers, enhancing its market position.
However, Sosandar recorded a modest net loss of £0.3m for FY24, contrasted with an improved profit before tax of £1.0m achieved in the second half of the year, following a first-half loss of £1.3m. Notably, the gross margin saw an uplift, reaching 57.6%, a 2.4% increment from the prior year.
The brand ended the year with strong financial health, marked by an enhanced net cash position of £8.3m, reflecting an 8% growth year-on-year. This strength underpins Sosandar’s cautious approach to growth in the upcoming fiscal year, FY25, prioritising margin sustainability over revenue expansion: “We have taken the decision not to drive revenue growth at the detriment of margins in FY25,” the company stated.
Looking ahead, Sosandar’s gross margin is expected to increase by 670 basis points to 63.4%, aligning pre-tax profit projections with market expectations despite anticipating flat revenue figures relative to the previous year. Co-CEOs Ali Hall and Julie Lavington emphasised their strategic focus on sustainable growth, cash generation, and maintaining a robust balance sheet in the forthcoming fiscal period.
The company has also unveiled plans for its first physical stores, with openings slated for September in Marlow and Chelmsford. These strategic locations reflect the brand’s rigorous site selection process, focusing on prime, affluent areas optimal for their customer demographic.
Sosandar’s strategic focus and cautious financial manoeuvres aim to solidify its market presence while fostering sustainable growth.
