H1 is strong for Sosandar and H2 starts well with record Black Friday
Fashion brand Sosandar is continuing to see strong revenue rises with the company on Tuesday saying it has also achieved its second six-month period of positive profit before tax (PBT).
Reporting its first-half results, it saw revenue growth of 72% and said that momentum has continued into the second half of the financial year with record sales in October and November. For the full year, it's currently trading in line with market expectations.
It's one of the fastest growing fashion brands in the UK and the six months to September 30 were clearly strong for the business. And in the two months since the, that strength has continued, despite the tough economic conditions in the wider market.
It said it has seen a “strong start to H2 FY23 with record sales months delivered in October and then November” and that “Black Friday saw [a] record number of visits to Sosandar.com and the strongest sales week on record for our third-party partners, with margins increasing on H1 FY23”.
Products across all categories are “selling well, with fast-tracked categories including partywear, knitwear and outerwear particularly strong”.
Looking back at H1, net revenue of £21 million was a 72% increase against the same period in the prior year with the growth split evenly between its own site and third-party partners. PBT of £0.1 million was a “substantial positive swing” compared to a £1.1 million loss in H1 FY22.
But the gross margin at 54.4% (down from 56.5% a year ago) points to a "more normal post-Covid trading period, including a planned end of season sale in August”.
During the first half, the number of orders increased on Sosandar.com by 43% to 347,137, of which 80,935 were from brand new customers. Average order frequency was up 8% to 2.41 times and website visits were up 25% to over 7.7 million. The conversion rate increased to 4.5% from 3.9%, Average Order Value rose 4% to £90 and active customers were up 33% to 254,601.
It saw strong trading with third-parties M&S, Next, John Lewis and The Very Group across all product categories, and launched a new partnership with N Brown's JD Williams on a wholesale agreement in September.
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