In its fourth quarter, Sosandar reported revenue of 3.94 million pounds, up 63 percent. For the financial year ended March 31, 2021, the company expects to report revenue of 12.2 million pounds, up 35 percent, with the EBITDA loss reduced by over 60 percent.
Commenting on the trading report, Ali Hall and Julie Lavington, the company’s co-CEOs said: “In what has been a year that no one could have possibly predicted, we are delighted to have shown resilience and our entrepreneurial spirit, overcoming challenges to deliver a significant improvement in revenue and reduction in EBITDA losses, together with the further diversification of our product range.”
Review of Sosandar’s financial performance
The company said in a release that it witnessed customer activity step up each month during the fourth quarter with record revenue delivered in the month of March, up 66 percent compared to January and up 163 percent on the lockdown impacted previous year. Gross margin also showed continual improvement throughout the fourth quarter with March at 54 percent.
Number of orders increased 29 percent to 276k, while repeat orders increased 40 percent to 190k and conversion rate increased to 3.1 percent from 2.7 percent. Gross margin was 48.1 percent compared to 48.5 percent in the prior year reflecting promotional activity during the period of lockdowns.
The company witnessed strong sales with John Lewis and Next, with March being a new record month and a significant step up on the previous best, and the product range continuing to develop and expand. Sosandar also launched with Marks & Spencer as a third-party online retailer at the end of March with positive initial sales.
The company’s loungewear, knitwear, denim and outerwear performed particularly well. In January 2021, Sosandar launched active and leisure wear, with strong sales results and the category already being established as a key part of the product mix.