22nd Oct 2024 17:19
(Alliance News) - Sosandar PLC on Tuesday reiterated its confidence in the company's long-term growth trajectory, as it narrows its interim loss despite a drop in revenue.
The Cheshire, England-based online women's fashion brand expects to report a narrowed pretax loss of GBP700,000 for the six months that ended September 30, from GBP1.3 million the year before.
It also expects to report revenue of GBP16.2 million, down 27% from GBP22.2 last year, as the group "continued to transition away from price promotional activity outside the major scheduled sale events".
Since the end of the first half of its financial year, Sosandar said October trading has "started strongly" across all channels, with a "substantial positive swing" in revenue compared to the first half of its financial year.
It adjusts its full-year revenue expectations for financial 2025, due to end March 31, 2025, to GBP40 million, and leaves its profit expectations unchanged.
"Our medium-term strategic goal is to deliver a pretax profit of at least GBP10 million," the company added. Sosandar said it believes market expectations for 2025 currently stand at GBP45.6 million in revenue and GBP1.0 million in pretax profit.
Co-Chief Executive Officers Ali Hall and Julie Lavington said: "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."
Shares in Sosandar closed 4.6% lower at 10.26 pence each in London on Tuesday afternoon.
By Emily Parsons, Alliance News reporter
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