Women’s fashion brand Sosandar ‘at inflection point’ back to topline growth

Sosandar, the Cheshire-based women’s fashion brand, is at an inflection point back to topline growth, it said in a trading update for the year ended March 31, 2025, today.

It said it has enjoyed a year of strong strategic progress with a positive year on year swing in margin and pre-tax profit.

It also achieved a reduction in price promotional activity and opened its first own stores.

It said March sales were in line with the prior year and this momentum has continued into April to date, with both own site sales and sales as a whole ahead of the prior year.

Although pre-tax profits are softer than hoped, they represent a substantial positive swing compared with fiscal year 2024.

This was driven by slower February sales, but the business continued to stick to its strategy and did not chase volume through implementing price promotions.

The strategy is now proving successful, with the business reaching an inflection point back to topline revenue growth.

Sosandar said pre-tax profits are expected to be no less than £500,000, which compares with a £300,000 loss the previous year, and a £700,000 loss in the first half of 2025.

Revenues of £37.2m are down from £46.3m in 2024, but reflect the continued transition away from price promotional activity.

Net cash was £7.1m, against £8.3m at December 31, 2024, after £1.2m of capital expenditure for the own stores roll-out.

The business opened six stores during the reporting period as it transitioned to becoming a full-price multi-channel retailer.

Prior to this update, Sosandar said it believes that market expectations for the year were revenues of £38.5m and a £1m pre-tax profit.

The retailer said margin enhancement and profitability were prioritised as it continued its transition to becoming a full-price multi-channel retailer.

The material improvement in gross margin against historical levels is now being delivered on a sustained basis and provides the foundation from which to drive sustainable and profitable cash-generative growth over the long term towards the strategic objective of £10m profit before tax.

Today’s stock exchange announcement said: “We are incredibly proud of seeing the Sosandar brand on thriving high streets and are delighted with the reception we have received so far.

“We are pleased with the progress of our store portfolio to date, with sales tracking in line with our expectations, we have seen circa 60% of purchases in store being made by brand new customers to the brand and have seen a demonstrable uplift in traffic and conversion on our own site in the areas where our stores are located.

“We continue to benefit from our strong brand and understanding of our customers, compounded by the opening of our first six stores.

“This is also evident from the success we are seeing through our third party partners and our ability to leverage Sosandar’s brand equity, leading to our first licensing agreement signed with NEXT for a Sosandar homeware range, which remains on track for launch in Autumn 2025.”

It added: “Having delivered on our strategic objectives for the year, we are confident that we are now at an inflection point.

“We expect a return to sales growth in FY26 and the board reiterates its confidence in the company delivering market expectations for the new financial year.

“The foundations are also in place for sustainable, profitable and cash generative growth over the medium to long term.”