Sosandar plc, the Wilmslow-based fashion firm run by former magazine publishers Ali Hall and Julie Lavington, said revenue for the full year would likely be lower than previously expected as it focuses on charging full price for its clothes and becoming profitable. 

“Due to our continued prioritisation of profitability at this stage of the Company’s development, we are moderating our FY25 revenue expectation to £40m,” the company said. “Our FY25 profit expectations are, however, unchanged in light of the continued strength and upward trajectory of our gross margin, selective use of marketing, significant reduction in price promotional activity and careful management of other overheads.”

Analysts had been expecting revenue of £45.6 million for the year and pre-tax profit of £1 million.

Sosandar said trading in October had started well across all channels, with revenue ahead of last year, and a continuation of a strong gross margin as it heads towards the seasonal peak. 

For the latest six months, Sosandar said revenue fell to  £16.2 million from £22.2 million a year ago, as it transitions away from price promotional activity outside the major scheduled sale events. It said it made a £0.7 million pre-tax loss in the period, compared with a £1.3 m pre-tax loss in the same quarter a year ago, helped by margin enhancement and cost management. 

“We continue to focus on margin enhancement as we begin to drive sustainable profitable growth. Our medium-term strategic goal is to deliver a pre-tax profit of at least £10m (as derived from our previously disclosed objectives of a pre-tax profit margin of at least 10% and £100m+ revenues),” the company said. “The Board reiterates its confidence in Sosandar’s prospects, both for the remainder of FY25 and in the longer-term growth opportunity.”

Hall and Lavington, Co-CEOs, 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.”