Sosandar reveals first store locations alongside revenue increase

British womenswear brand Sosandar has reported that its revenues have increased by 9 percent to 46.3 million pounds for the year ended March 31, 2024, alongside unveiling the location for its first two physical stores.

In its full year results and trading update, Sosandar said it was transitioning into a multi-channel retailer and plans to open its first two standalone stores in Marlow and Chelmsford, which it describes as “top-tier locations” due to their affluent catchment.

Both stores are expected to open in September this year, the Marlow store will be based on Marlow High Street, joining retailers such as The White Company, Sweaty Betty and Toast, while the other will be in the heart of Chelmsford, on Bond Street, which boasts brands including Mint Velvet and The White Company.

Sosandar also added that they were in the late stage of negotiation with “a broader set of store locations identified for roll-out over the medium term”.

Ali Hall and Julie Lavington, co-chief executive’s at Sosandar, said in a statement: "We are excited to announce the first locations for our Sosandar stores. These stores fit our criteria of being positioned in top-tier locations, located in the right position in affluent, thriving locations where Sosandar customers over-index.

“Throughout the process we have remained disciplined in our approach to ensuring 'right price, right location'. We look forward to the official opening of them over the next few months, and with others to come.”

As part of the store rollout, Sosandar has hired a head of retail, head of retail operations and visual merchandiser to build on the extensive retail experience within its existing teams.

Sosandar reports annual sales rise

For FY24, Sosandar said gross margin also improved to 57.6 percent, a 2.4% year-on-year increase, while a loss of 0.3 million pounds followed "an upswing in profit-before-tax in H2 to 1 million pounds," and a loss of 1.3 million pounds in the first half of 2024.

Sosandar added that in the second half of 2024, there was strong cash generation, resulting in “an improved net cash position” of 8.3 million pounds as of March 31, 2024, an 8 percent increase year on year.

When it came to the products that resonate with customers, sales of partywear, dresses, tailoring and knitwear, drove revenue, while trading with third-party partners has “continued to be strong”.

Hall and Lavington, added: “We have delivered a robust financial performance for FY24, delivering a profitable second half, accelerating revenue growth whilst at the same time growing our margin and generating cash. This performance has been achieved against one of the most challenging backdrops our industry has experienced and is a testament to how our customers feel about our on-trend, affordable, long-lasting, lifestyle-appropriate clothes.

"The transition to becoming a true multi-channel retailer, with our products being sold on our own site, our mobile app, through our own stores and via highly reputable third-party partners, is well underway. To meet our strategic goal of delivering a pre-tax profit margin of at least 10 percent in the medium term and 100 million+ pounds revenues, we have refined our focus and built a roadmap that will shape our decision making over the coming years. The core ingredients to this include prioritising margin and sustainable profitable growth rather than revenue growth through promotional activity. In doing so, we will leverage our brand equity, creating our own marketing ecosystem through our stores which will enable us to own our customers directly.”

Sosandar to open stores in Marlow and Chelmsford

Looking ahead to the first quarter in FY25, the brand said results at the gross margin and pre-tax profit level have been “highly encouraging,” but was too early in the year to predict a full year outturn, adding: “We have taken the decision not to drive revenue growth at the detriment of margins in FY25.”

Sosandar did note that the 670bps increase in gross margin to 63.4 percent means it expects pre-tax profit levels to remain in line with expectations, despite lower revenues. These are now likely to be in line with the prior year.

Hall and Lavington said: “Looking ahead, FY25 is focused primarily on delivering sustainable growth in our gross margin, pre-tax profit, cash generation and maintaining a strong balance sheet.

“Nonetheless, we do expect revenue growth from on our own site, further third-party partnerships, opening shops and the compounding positive effect that the shops will have across all our channels. We believe that the future is very bright as we take the Sosandar brand to more customers across the UK and worldwide, as we move forward towards reaching our strategic goal in the medium term."