Sosandar, a womenswear retailer, has reported a significant reduction in its pre-tax losses, highlighting strategic shifts in its business approach.
- For the six months ending 30 September 2024, Sosandar’s pre-tax loss decreased to £0.7 million from £1.3 million in the previous half-year.
- The company’s revenue experienced a decrease to £16.2 million from £22.2 million, attributed to a strategic reduction in promotional activities.
- Sosandar opened its first three physical stores, which witnessed strong trading and contributed to increased online traffic.
- The retailer remains optimistic about future growth, supported by margin enhancements and strategic investments.
Sosandar announced its financial results for the half-year ending 30 September 2024, revealing a reduced pre-tax loss of £0.7 million, a notable improvement from the £1.3 million loss in the previous six months. This improvement reflects the company’s commitment to transitioning away from price-driven promotional activities, focusing instead on sustainable growth strategies.
The total revenue for the period was reported at £16.2 million, a decrease from £22.2 million in the first half. This drop is a direct result of Sosandar’s calculated move to limit promotional activities outside of major sale events, aiming to preserve margins and focus on long-term revenue growth.
Despite the reduction in overall revenue, the company highlighted a strong gross margin of 62.2%, up from 55.4% the previous year. This improvement underscores the company’s emphasis on margin enhancement as a critical component of its financial strategy, demonstrating effective cost management and pricing discipline.
In a significant strategic development, Sosandar opened its first three standalone physical stores. The initial performance of these locations has been robust, with ‘strong trading’ observed across all sites. Moreover, these openings have positively impacted online traffic, particularly from areas surrounding the new stores, indicating a successful integration of physical and digital sales channels.
Co-CEOs Ali Hall and Julie Lavington expressed their pride in the brand’s expansion into physical retail, emphasising their commitment to a multi-channel retail strategy. They highlighted customer feedback as overwhelmingly positive, which aligns with their focus on product quality and store environment. The leadership remains confident in their growth strategy, which is already beginning to yield positive results with strengthened margins and enhanced customer engagement.
Sosandar is well-positioned for continued growth, supported by strategic investments and improvements in operational efficiency.
