- Angela Gonzalez-Rodriguez |
Sosandar’s stock traded upwards Thursday as the fashion startup reported its revenue almost quadrupled in the fiscal year 2018 to reach 1.35 million pounds.
Revenue growth was fueled by 268 percent year-on-year like-for-like sales jump. Gross profit was also up, advancing 532 percent to 660,000 pounds. On the downside, underlying earnings fell short, incurring on a 3.1 million pounds loss.
Sosandar shucked the London’s junior stock market in 2017 when it started trading on the back of a reverse takeover by a cash shell.
Disclosing the financial results Sosandar’s co-chief executives Julie Lavington and Ali Hall said in a statement: "Our strategy is to continue to broaden the product range to give more choice to our customers, buy deeper and engage in a more diversified marketing strategy. We remain focused on data-driven efficiencies and digital investment to improve our customers' journeys."
Lavington and Hall are all set to emulate ASOS and Boohoo success, reason why they have focused on investing in customer acquisition through the growth of its online following.
Online women's fashion retailer Sosandar posted a deeper annual loss after investments in customer acquisition, product imagery and people offset rising revenue.
Pre-tax losses for the year through March deepened substantially from 1.8 million pounds loss to this year’s 6.1 million pounds. Revenue increased to 1.35 million pounds while gross margins improved 11.6 percent to 49.4 percent.
“The momentum reported in March has continued into the new financial year surpassing March performance, with business continuing to progressively increase revenues,” co-chief executives Ali Hall and Julie Lavington said.