Wilmslow womenswear brand Sosandar, which now operates several physical stores as well as its long-established ecommerce operation, has said in a new trading update that it expects a pre-tax profit of at least £500,000 for the year to 31 March, compared with a pre-tax loss of £300,000 in the previous year.
The return to profit comes despite revenue for the year falling by 19.6% to £37.2m, and sat some way below market expectations, which had stood at revenue of £38.5m and profit before tax of £1m ahead of the update.
Sosandar said the results reflected “the continued transition away from price promotional activity” but conceded that profit for the full year was “softer than we had hoped,” although the company highlighted a positive swing compared with 2023/24.
Trading in the fourth quarter was “robust” against the continued challenging macro-environment. In January, the company delivered full-price sales in line with its expectations. However, February was “softer than anticipated.”
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The company added that March sales were in line with the prior year, and this momentum has continued into April so far, with both own site sales and sales as a whole ahead of the prior year.
Over the course of the year, Sosandar upped its gross margin to 62.5%, from 57.6% in the previous year.
Also in 2024/25, the business opened its first six bricks and mortar stores, including regionally in Harrogate and Newcastle’s Metro Centre. It said around 60% of purchases in store are made by customers new to the brand, and it has seen an uplift in traffic and conversion on its website in the areas where stores are located.
The company said in a statement: “Having delivered on our strategic objectives for the year, we are confident that we are now at an inflection point.
“We expect a return to sales growth in 2025/26 and the board reiterates its confidence in the company delivering market expectations for the new financial year. The foundations are also in place for sustainable, profitable and cash-generative growth over the medium to long term.”
