Sosandar growth continues to impress with strong festive sales

Sosandar growth continues to impress with strong festive sales

While it seems that Sosandar’s spectacular growth should slow down at some point as it gets bigger, it doesn’t seem to be happening just yet. The company continues to have a huge growth runway ahead of it as its latest quarterly performance shows.

Sosandar

On Wednesday, the womenswear business – which is one of the fastest growing fashion brand in the UK, although still quite small – provided a trading update for the last three months of the year.

And it said it saw “a record quarter” with revenue of £14.3 million, which was a 23% leap year on year.

The gross margin also expanded, reaching 58.3% from 56.8% the year before. The like-for-like gross margin, which excludes the increase of wholesale, was 60.7% against 57.3% 12 months ago.

The company had already reported in mid-December that it had seen a strong performance in October and November and has now added the fact that this continued into the crucial Christmas month, with all channels “continuing to perform well”.

In the lead up to Christmas, it saw “extremely strong sales across all categories” with partywear, dresses, tailoring, knitwear and smart trousers being “standout items”.

During that December update, it had highlighted how it was sacrificing some profits in order to boost margins and was reining in promotional activity as it forged ahead with its multi-channel strategy.

And this continued in the final month of the year as the “material improvement in gross margin” showed.

As mentioned, it has plenty of growth opportunities ahead of it and this spring it expects to have opened its first identified store in the UK.

Sosandar

In addition, the company “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”.

The retailer said its 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 £100 million+ revenues and a pre-tax profit margin of at least 10% in the medium term”.

And it confirmed that it “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”. Those expectations for the year ending 31 March 2024 are currently revenue of £46.8 million and pre-tax profit of £0.1 million.

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