Sosandar sales drop but losses shrink as it transitions away from promotions

For the first half period, women’s fashion brand Sosandar reported revenue of 16.2 million pounds versus 22.2 million pounds in the same period of the previous year as the group continued to transition away from price promotional activity outside the major scheduled sale events.

The company’s gross margin for the period was 62.2 percent versus 55.4 percent in the previous year, and pre-tax loss contracted to 0.7 million pounds against 1.3 million pounds pre-tax loss.

Commenting on the first half results, Ali Hall and Julie Lavington, co-CEOs, Sosandar said: "We are now well on our way to becoming a true multichannel retailer following the opening of our first four stores during the half. Seeing the Sosandar brand on high streets, and the reaction we have received so far, validates our decision to give our customers more ways to shop with our brand.”

Sosandar said in a statement that during the period under review, Sosandar opened the first four company-owned stores, with strong trading across all stores, coupled with uplift in traffic to the website in the areas where the stores are located.

The company saw strong sales of denim, holiday wear and dresses in the summer months and partywear and knitwear as it moved into autumn. Trading with well-established third-party partners, including Next and Marks & Spencer continued to be strong. Sosandar also launched in store with Arnotts in Dublin, Ireland, in September, after initially selling online through Arnotts' website.

The company added that trading in the second half of the financial year has been in line with full year market expectations and post period, margin and profit continue to show a significant positive swing versus last year. Average gross margin was 64 percent.

“Trading in the second half of the financial year to date has been encouraging, across all our channels, as we head into peak season. In the lead up to Christmas we have seen extremely strong sales of occasionwear, knitwear, including knitted dresses, and denim,” added Hall and Lavington.

After the first year end, Sosandar signed a licensing agreement with Next for a Sosandar homeware range following the success of Sosandar's clothing range sold through the company.