Wilmslow-based fashion firm Sosandar plc — run by former magazine publishers Ali Hall and Julie Lavington — has announced a “record quarter” with revenue of £14.3 million, up 23% year-on-year.
The firm said its gross margin was 58.3% versus 56.8% in the prior year, while like for like gross margin, which excludes the increase of wholesale, was 60.7% versus 57.3% in the prior year.
In a trading update covering the three-month period ended December 31, 2023, Sosandar said: “The material improvement in gross margin reflects the planned reduction in certain price promotional activity and continues to validate our multi-channel strategy.
“In Spring 2024, the company expects to have opened its first identified store in the UK.
“In addition, the company will continue to drive sales through its own site and app, further enhance its relationships with third-party partners and continue to further develop its international strategy, after successful launches in Australia and Canada.
“This performance and continued demand demonstrates the strength of the Sosandar brand and unique product range in the key trading period before Christmas.
“In the lead up to Christmas, the company saw extremely strong sales across all categories with party wear, dresses, tailoring, knitwear and smart trousers being standout items.
“The group’s performance in FY24 so far has served to validate management’s strategy to take the Sosandar brand to more customers across the UK and worldwide.
“This is moving the business towards reaching its strategic goal of delivering £100m+ revenues and a pre-tax profit margin of at least 10% in the medium term.
“The board confirms that the company continues to trade in line with market expectations for the current financial year and further expects the current momentum to be sustained over the final quarter.”
Sosandar believes that market expectations for the year ending March 31, 2024, are currently for revenue of £46.8 million and profit before tax of £0.1 million.