Sosandar plc saw a fall in sales for the first half of the year but losses narrowed at the Wilmslow firm.
The online fashion retailer for women also opened its first three standalone physical stores in the period, which it described as a “success” as it focuses on “sustained profitability and transitioning to a true multi-channel retailer”.
For the six-month period ended 30th September 2024, it reported revenue of £16.2m (H1 FY24: £22.2m) as it “continued to transition away from price promotional activity outside the major scheduled sale events”.
Despite the fall in sales, it saw a strong gross margin of 62.2% against 55.4% in the prior period, which led to a £700,000 pre-tax loss compared with £1.3m.
Sosandar said it has robust net cash of £7m, reflecting timing of inbound stock for the autumn/winter collection and capital expenditure for its rollout of stores.
The company saw strong trading in all three stores, coupled with a demonstrable uplift in traffic to the website in the areas where the stores are located.
They are situated in Marlow, Chelmsford and the Metrocentre in Gateshead, with another soon to open in St David’s centre, Cardiff.
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“These locations were carefully selected for being affluent, thriving locations where Sosandar customers over-index,” the firm stated. “It remains our expectation that the store roll out programme will be funded entirely from our existing financial resources.”
Sosandar has third-party partnerships with Next and Marks & Spencer in the UK, The Iconic in Australia and Arnotts in Dublin.
Ali Hall and Julie Lavington, co-CEOs, commented: “The opening of our first three own stores marks a key point in the company’s development, as we move towards becoming a true multi-channel retailer.
“We are incredibly proud of seeing the Sosandar brand on thriving high streets and are delighted with the reception we have received so far. The feedback on our product range and store environment from both new and existing customers has been fantastic, which shows the power of the Sosandar brand.
“We have hit the ground running with strong footfall and conversion, and have also seen a demonstrable uplift in traffic to our website in the areas where our stores are located.
“We remain committed to delivering in line with our growth strategy, focusing on margin enhancement to improve profitability, and we are already seeing the results of this in our performance.
“This has continued into October and we remain excited for what lies ahead for Sosandar.”