Sosandar has announced new stores after Christmas revenue dip

The fashion retailer posted revenue of £12.2m for the three months ending December 31, down from £14.3m for the same period last year. 

Sosandar said the sales performance was expected due to its transition away from promotional activity and its focus on improving gross margin, which increased from 58.3% last year to 64.7%. The retailer said there was a positive swing in its profit trajectory because of the strategy. 

The third-quarter result represented a 50% increase against Q1 and Q2, which Sosandar described in a statement to markets as “a significant step up in comparison to the prior year” – when Q3 revenues increased against the two prior quarters by 25% and 31%. 

Third-party partnership sales “continued to be strong”, said the retailer, with Sosandar among the top-selling brands across its third-party retail partners including Next and M&S.

The retailer held its full-year guidance of £40.5m annual revenue and £1m profit before tax. 

Sosandar also announced it will continue expanding its bricks-and-mortar presence in the UK with two new lease agreements. The retailer has secured units in Bath and Harrogate, which “meet Sosandar’s strict criteria of top-tier, thriving locations, where Sosandar customers over-index”. It currently operates four stores, which it said performed well over the period. 

The retailer added: “Overall trading remains in line with market expectations for the current financial year, with January starting well and pleasing levels of full price sales, despite the well-publicised challenging macro-environment.”