Sosandar sales momentum is boosted by warm weather

Sosandar has confirmed its first annual profit, with pre-tax earnings coming in at £2.2million last year following a £600,000 loss in the previous 12 months.

The online women’s fashion retailer’s sales momentum has continues into the new year, with revenues 10 per cent on the previous year to £11.4million in the three months to 30 June.

Sosandar attributed its strong start to the financial year to an increase in demand on their summer range and holiday clothing. 

The update follows fresh data from the British Retail Consortium, which revealed unusually warm weather last month led to 5 per cent year-on-year retail sales growth, led by summer essentials. 

Fashion group Sosandar have announced that their revenue has jumped up by 10 per cent to £11.4million

Paul Martin, UK head of retail of KPMG, said: ‘The sun was shining on retailers in June, with the warm weather bringing consumers back out to the high street and like for like sales up nearly 5% on last year.

‘Sales of suntan lotion, food and clothing were all given a boost as consumers made the most of the record June temperatures.’

Sosandar achieved 44 per cent year-on-year revenue growth to £42.5million in the 12 months to 31 March, up from £29.5million the previous year, as average order values rose 8 per cent to £97.27. 

Ali Hall and Julie Lavington, co-chief executives of Sosandar, told investors on Tuesday it had been a ‘transformational year’ for the firm.

They added: ‘Despite the challenging macroeconomic backdrop, we have seen increasing demand for our products across all categories with strong trading across both Sosandar.com and through our third-party partners.

‘As Sosandar continues to grow, we remain committed to investing in our product range to offer our customers an ever-growing variety of on-trend, affordable, long lasting, lifestyle appropriate clothes.’

However, Sosandar shares were down 5.5 per cent to 23.9p in early trading, paring back gains over the last 12 months to 27.4 per cent. 

Davy Research analyst David Reynolds said the decline could indicate investor skepticism that the firm can maintain its sales momentum amid the difficult economic backdrop. 

Reynolds added: ‘While [last year] felt big with the transition to profitability and a raft of diverse growth initiatives, [this year] somehow feels bigger as [the group] goes international, launches a mobile app, further expands the partner portfolio, including an inaugural physical presence, and continues to build out the management layer. 

‘Most of these initiatives will go live in some shape or form over the second half of the fiscal year. The opportunity is material, but the risk that comes with it is equally material.’

Bosses Hall and Lavington added: ‘We are delighted to report that demand for our fast-tracked product range has continued to increase with knitwear, formal tailoring, coats, partywear, summer occasion wear and swim and beach wear all performing particularly well during the year. 

‘The momentum built throughout FY23 has continued into FY24 with current trading in line with expectations. 

‘We are very excited for the opportunity available to us in FY24 and beyond as we deploy the money raised from our over-subscribed equity fundraise in January 2023 to support our growth both in the UK and internationally.’