Fashion etailer Sosandar has reported a resilient performance in its first quarter, when sales rose and losses fell.
Sosandar said that total sales climbed 54% year on year in the period to June 30, when losses were reduced by 70%.
The retailer said the performance showed “the strength of the company’s business model and continued demand for its offering”.
In June, Sosandar’s sales rose, “with a strong gross margin from a shift back to full-price purchases following some promotion and discounting in early April” and the business was close to break-even.
Sosandar said: “The results have been driven by the shift in strategy implemented in response to Covid-19 and the associated lockdown. This has included diversified product ranges adapted to changes in customer demand, with success in areas such as denim, linen and casual summer dresses, in addition to the industry-wide growth in loungewear.
“The company has also significantly reduced marketing spend, with increased frequency and a focus on high quality, relevant communications successfully engaging with the customer base and converting prospects that have been established over time.”
There was a 24% increase in new customers over the quarter and “robust growth in return customers”.
The retailer said there “continues to be a very significant opportunity available to Sosandar” and that, “in line with the external environment improving, it will recommence controlled and careful new customer acquisition towards the end of quarter two and beyond”.
At the end of June, cash “remained broadly flat at £4.4m”.
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