Momentum maintained with strong Xmas trading for fashion brand Sosandar
A busy Christmas period saw Wilmslow-based online women’s fashion brand, Sosandar, hit record revenues in the quarter to December 31, 2023, continuing the strong momentum of the previous quarter.
In a trading update today, the business said it is trading in line with expectations, and predicts strong progress for the final quarter of the year.
Revenues in the third quarter hit £14.3m, up 23% year-on-year compared with the £11.6m figure a year ago.
Gross margin was 58.3% versus 56.8% in the prior year, while like for like gross margin, which excludes the increase of wholesale, was 60.7% vs 57.3% in the prior year. Net cash stood at £7.7m as at December 31, 2023 (£7.3m as at November 30, 2023).
Today’s update said the material improvement in gross margin reflects the planned reduction in certain price promotional activity and continues to validate the business’s multi-channel strategy. In spring 2024, the company expects to have opened its first identified store in the UK.
In addition, it said it will continue to drive sales through its own site and app, further enhance its relationships with third-party partners and continue to further develop its international strategy, after successful launches in Australia and Canada.
It said: “This performance and continued demand demonstrates the strength of the Sosandar brand and unique product range in the key trading period before Christmas. In the lead up to Christmas, the company saw extremely strong sales across all categories with party wear, dresses, tailoring, knitwear and smart trousers being standout items.”
Sosandar said the group’s performance in FY24 so far has served to validate management’s strategy to take the Sosandar brand to more customers across the UK and worldwide.
“This is moving the business towards reaching its strategic goal of delivering £100m+ revenues and a pre-tax profit margin of at least 10% in the medium term. The board confirms that the company continues to trade in line with market expectations for the current financial year and further expects the current momentum to be sustained over the final quarter.”
Current market expectations for the year ending March 31, 2024, are for revenue of £46.8m and a £0.1m profit before tax.
