The company also saw £0.6 million (~$0.78 million) substantial positive swing to £0.7 million pre-tax loss from £1.3 million (~$1.69 million) pre-tax loss in H1 FY24 because of margin enhancement and continued careful cost management.
Sosandar plc reported H1 FY25 revenue of £16.2 million (~$19.76 million), down from £22.2 million (~$28.87 million) YoY, with a strong gross margin improvement to 62.2 per cent.
Aided by cost management, pre-tax losses narrowed to £0.7 million.
The brand opened its first three UK stores and forecasts FY25 revenue of £40 million (~$52.02 million), focusing on profitability and sustainable growth.
There was robust net cash of £7 million (~$9.10 million), reflecting timing of inbound stock for the Autumn/Winter collection and capital expenditure for Sosandar’s roll-out of its own stores (£8.3 million on March 31, 2024).
The company’s trading in October has started well across all channels, with revenue being ahead of last year and a continuation of a strong gross margin as it heads towards seasonal peak, as per a press release by Sosandar.
The company opened its first three physical stores in the UK, as it continues to further expand its multiple routes to market.
Ali Hall and Julie Lavington, co-CEOs commented: “The opening of our first three own stores marks a key point in the Company’s development, as we move towards becoming a true multi-channel retailer. We are incredibly proud of seeing the Sosandar brand on thriving high streets and are delighted with the reception we have received so far. The feedback on our product range and store environment from both new and existing customers has been fantastic, which shows the power of the Sosandar brand. We have hit the ground running with strong footfall and conversion and have also seen a demonstrable uplift in traffic to our website in the areas where our stores are located.
“We remain committed to delivering in line with our growth strategy, focusing on margin enhancement to improve profitability, and we are already seeing the results of this in our performance. This has continued into October, and we remain excited for what lies ahead for Sosandar.”
The company’s FY25 profit expectations are, however, unchanged considering the continued strength and upward trajectory of its gross margin, selective use of marketing, significant reduction in price promotional activity and careful management of other overheads, stated the press release by.
The fashion house focuses on margin enhancement as it begins to drive sustainable profitable growth. Its medium-term strategic goal is to deliver a pre-tax profit of at least £10 million (~$13.01 million) (as derived from its previously disclosed objectives of a pre-tax profit margin of at least 10 per cent and £100 million + revenues). The Board reiterates its confidence in Sosandar’s prospects, both for the remainder of FY25 and in the longer-term growth opportunity.
The company’s FY25 revenue expectations moderated to £40 million (~$52.02 million), pre-tax profit expectations unchanged given continuing margin strength, evolution of customer engagement strategy and careful management of other overheads.
Fibre2Fashion News Desk (SG)
