Wilmslow-based fashion firm Sosandar plc — run by former magazine publishers Ali Hall and Julie Lavington — has announced that the locations for its first two stores will be Marlow and Chelmsford.
“These locations were highly sought after given both stores fit our criteria of being positioned in top tier locations, located in the right position in affluent locations and are where Sosandar customers over-index,” said the company.
“Both shops are expected to open in September, whilst other prospective stores are at a late stage of negotiation with a broader set of store locations identified for roll-out over the medium term.”
The news came as Sosandar published financial results for the year ended March 31, 2024, and also a trading update.
The firm reported net revenue growth of 9% to £46.3 million and a loss of £300,000 for FY24.
On post-period trading Sosandar said: “Our Q1 FY25 results at the gross margin and pre-tax profit level have been highly encouraging and reflect our prioritisation of margins with reduced discounting ahead of planned store launches.
“As such, whilst it is early in the year to predict a full year outturn, we have taken the decision not to drive revenue growth at the detriment of margins in FY25.
“The 670bps increase in gross margin to 63.4% means pre-tax profit levels are expected to remain in-line with expectations*, despite lower revenues, which are now likely to be in-line with the prior year.
“Looking further ahead, we expect that our enhanced brand presence and sales mix will, once again, deliver revenue growth in the years ahead, driven by growth through our own website, the rollout of stores and the compounding positive effect that the shops will have across all of our channels.”
Sosandar co-CEOs Ali Hall and Julie Lavington said in a statement: “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% in the medium term and £100m+ 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.
“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.
“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.”
Sosandar said it believes that market expectations for the year ending March 31, 2025, are currently for revenue of £54.6 million and profit before tax of £1 million.