Strong Autumn Performance and Expansion Plans Drive Confidence

  • Sosandar reports half-year loss despite strong autumn trading
  • Revenue up by 6% to £22.2m in six months ended September
  • Strong revenue growth, increased gross margin and positive pre-tax profit in October and November
  • New fashion concept stores in Sainsbury’s performing well
  • First own stores planned for Spring 2024
  • Partnerships with two large international third-party partners signed

Sosandar has reported a pre-tax loss of £1.3m for the half-year, down from a profit of £0.1m in the previous year, but maintained its full-year outlook due to strong autumn trading. Revenues increased by 6% to £22.2m in the six months ended September, with October and November revenues hitting £10m, a 16% increase from the same period last year. The company noted that all channels performed well, with strong revenue growth, positive pre-tax profit in both months, and a record trading month in November, with similar momentum continuing into December. Sosandar also made significant progress towards opening its first own stores, with locations identified for a planned launch in FY25. The new fashion concept stores in Sainsbury’s went live in early October, with a wide range of Sosandar products selling well in all nine stores. Co-CEOs Ali Hall and Julie Lavington said that the company has made significant steps towards becoming a multi-channel retailer while expanding the reach of the Sosandar brand. They also signed first agreements with two large prestigious international third-party partners. The product range saw growth across all categories, particularly in summer occasion wear, beach and swim ranges over the summer, and party wear, dresses, tailoring, and smart trousers leading strong sales in the lead up to Christmas. Trading in the second half of the financial year has been encouraging, in line with full-year market expectations, with November being a record month. The company believes the future is bright as they take the Sosandar brand to more customers across the UK and worldwide, aiming for £100m+ revenues and a pre-tax profit margin of at least 10% in the medium term.

Factuality Level: 8
Factuality Justification: The article provides accurate information about Sosandar’s financial performance, including revenue growth, loss reduction, and progress towards opening own stores. It also includes quotes from co-CEOs that support the company’s optimism for future growth.
Noise Level: 3
Noise Justification: The article provides relevant information about Sosandar’s financial performance and strategic plans for growth, with quotes from co-CEOs providing insight into their outlook and product success. It stays on topic and supports its claims with specific revenue figures and channel performance details.
Financial Relevance: Yes
Financial Markets Impacted: Sosandar’s financial performance impacts its own stores, partnerships with Sainsbury’s and Freemans, and future revenue goals.
Financial Rating Justification: The article discusses the company’s financial results, performance across various channels, and plans for expansion, which are all relevant to financial topics.
Presence Of Extreme Event: No
Nature Of Extreme Event: Other
Impact Rating Of The Extreme Event: Minor
Extreme Rating Justification: There is no extreme event mentioned in the text.

Reported publicly: www.retailsector.co.uk