Fashion retailer Sosandar has revised down its full-year profit and sales expectations, as it is continuing its “transition away from price promotional activity”.
In a trading update for the financial year ended March 31, 2025, the retailer said it now expected profit before tax to be “not less than” £500,000, with revenue of £37.2m. Prior market expectations for the year were profits of £1m and sales of £38.5m.
Sosandar said profit before tax for the year was “softer than we had hoped, although a substantial positive swing compared with FY24”, driven by slower February sales. However, the brand said it “continued to stick to our strategy and did not chase volume” through promotional activity.
Gross margins improved to 62.5% and Sosandar finished the period with £7.1m of net cash after £1.2m of expenditure on the rollout of its growing store network.
It opened its first six stores during the period, as Sosandar transitioned to becoming “a full-price multichannel retailer”.
Post-year end, Sosandar said April trading has been strong compared to the same period in 2024 and it was “building on the momentum seen in March”.
The company said: “Having delivered on our strategy objectives for the year, we are confident that we are now at an inflection point. We expect a return to sales growth in FY26 and the board reiterates its confidence in the company delivering market expectations for the new financial year.
“The foundations are also in place for sustainable, profitable and cash-generative growth over the medium to long-term.”
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