Shares of Sosandar plc, the Wilmslow-based fashion firm run by former magazine publishers Ali Hall and Julie Lavington, fell more than 20% on Tuesday after the firm said it is “moderating” its expectations for revenue and profit growth in the current year.
Sosandar published results for the year ended March 31, 2025, showing revenue fell 20% to £37.1 million “reflecting a deliberate transition away from price promotional activity in order to improve gross margin.”
“The Group is reporting an audited £0.1m loss before tax for FY25,” said Sosandar. “This differs from the £0.5m profit before tax that the Group anticipated reporting for FY25 in the trading update released on 16 April 2025, the difference being due to adjustments arising from the audit including £0.4m associated with a stock write down and £0.1m of additional one-off costs associated with the move of warehouse.”
Sosandar also published a Q1 post-period trading update showing a return to revenue growth with net revenue of £9.5 million, a 15% increase versus the prior year “despite no sales through Marks & Spencer, our second biggest third-party partner, since mid-April due to their cyber incident.”
Sosandar’s own website also returned to revenue growth with a 15% increase versus the prior year, driven by an increase in traffic, conversion and number of orders from both new and existing customers.
“Following the cyber-incident, the Company is cautiously anticipating lower revenue through Marks & Spencer for the rest of FY26,” said Sosandar.
“This, alongside the decision to focus on the existing store portfolio, means that the Company is taking a prudent view and is therefore modifying FY26 guidance. The Company now expects FY26 revenue to be up 18% to £43.6m, with an expected profit before tax of £0.4m.”
Prior to Thursday’s announcement, Sosandar believes that market expectations for the year ending March 31, 2026, were revenues of £46.2 million and adjusted profit before tax of £1.5 million.
Sosandar co-CEOs Ali Hall and Julie Lavington said: “During the last year we’ve strengthened the foundations of the business, which will enable us to deliver our growth and profit ambitions going forwards.
“Taking the decision to reduce price promotions has resulted in an expected reduction in revenue but significantly improved margins and cash generation which, in turn, has allowed the Group to maintain a robust balance sheet and self-fund its growth plan.
“The opening of our first stores was a milestone for Sosandar, and we are pleased with how we have brought our brand to life in the physical retail environment. We have taken clear learnings from the trajectory of our stores in market towns versus shopping centres and are focused on getting our existing portfolio to profitability before opening any further stores.
“This decision, alongside the continuing impact from the Marks & Spencer cyber incident on our third-party sales, means we are moderating our expectations for revenue and profit growth in the current year.
“Nonetheless, we believe we are now at an inflection point, with the foundations laid for profitable, cash generative growth, and we have returned to revenue growth in Q1 FY26. We will continue to leverage our brand equity and scale the business through our multiple channels and are excited for what lies ahead for Sosandar.”