The fashion retailer says that lower revenue through M&S and a decision to halt new store openings means they are taking a “prudent view” and cutting sales expectations for this year by £2.6m.

Sosandar has made no sales through M&S, which is its second-biggest third-party partner, since mid-April after a cyber-attack halted online trading. It said that it expected the impact from the attack to continue through to at least August.

While revenue still increased by 15% in the quarter versus the same period last year, the fashion retailer now expects revenue to be £43.6m versus previous market expectations of £46.2m. This would still be an 18% increase in sales. Adjusted profit before tax is now expected to be £0.4m, £1.1m less than expected.

The company has been under significant transformation over the past year, opening its first six stores and attempting to move Sosandar.com away from promotional activity in pursuit of higher margins.

It announced revenues of £37.1m in the year ended 31 March, 2025. This was a 20% drop on the same period the year before. However, it saw its gross margin increase to 62.1% from 57.6%.

Adjusted profit before tax was £156,000 (excluding warehouse transition costs of £223,000), after a loss of £332,000 in 2024.

Sosandar said it found revenue was stronger in its four stores in market towns than in the two in shopping centres. It added that the first two of these stores, in Marlow and Chelmsford, were moving towards breaking even.

Last year, the retailer told The Times that it was planning to open 50 stores in total over a three-to-five-year period. However, co-chief executives Ali Hall and Julie Lavington said today that it would focus on the six it currently has in the year ahead.

“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.”

“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.”

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