Sosandar powers ahead again, edges closer to profitability
Fast-growing womenswear business Sosandar reported its full-year results and a Q1 update on Tuesday, and it was yet another story of rapid expansion for the business.
The second half of the year to March 31, plus the latest quarter, marked nine consecutive months of profitability, while both the full-year and quarterly periods saw “significant strategic progress made, resulting in strong growth both on its own site and through third parties with the increased diversity of product mix resonating with customers”.
So, what does that all mean in figures? Last year saw revenue growth of 142% to £29.5 million, which included three consecutive months of record revenue in September, October and November 2021.
EBITDA improved significantly to a £0.2 million loss from a £2.9 million loss with every month in H2 being profitable. It saw an increase in gross margin to 56% from 48%, “reflecting a return to normal trading conditions following the impact of the pandemic on the prior year”.
It also said that total orders increased 84% to 508,000 and active customers increased 65% to 223,000. Meanwhile, the conversion rate rose to 3.87% from 3.09% and average order frequency increased by 10% to 2.28 times a year.
Trading with third-party partners M&S, Next and John Lewis “continued to be strong” with Sosandar product “resonating very well across all types of product category”. And it saw a “successful” launch with The Very Group on a wholesale arrangement in March with “positive early momentum”.
That’s all good news, and while some businesses have reported more recent downturns due to the cost-of-living crisis, Sosandar seems to be weathering that storm pretty well too.
It said it has made a “very strong” start in Q1 with revenue of £10.4 million representing a record quarter and an increase of 81% against Q1 of the previous year. Trading is in line with market expectations with a strong performance on both its own site and third-parties.
And product across all categories is selling-through “rapidly, with particularly strong sales of workwear, occasionwear and holiday clothes”.
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