Womenswear retailer Sosandar announced a drop in revenue for the six months ending in September, with sales falling to £16.2 million compared to £22.2 million the previous year. The company attributed this decline to a strategic shift away from promotional discounts outside major sales events.
Despite the drop in revenue, Sosandar posted a stronger gross margin of 62.2%, up from 55.4% in the same period last year. This improvement supported the company’s strategy and helped narrow its pre-tax losses. The retailer reported a pre-tax loss of £0.7 million, a significant improvement from the £1.3 million loss recorded a year earlier.
A key highlight for the company was its move into physical retail, marking a transition from its previous online-only business model. Sosandar opened its first stores in Marlow, Chelmsford, and the Metrocentre in Gateshead, with plans to open another store in St David’s Centre, Cardiff. The company reported strong trading across all its new locations and noted an increase in online traffic from areas where the stores are situated.
“These locations were carefully selected for their affluence and strong alignment with our customer base,” the company stated. “We are pleased with the performance of our store portfolio so far, with sales meeting our expectations.”
Sosandar also continues to benefit from strong partnerships with major retailers like Next and Marks & Spencer in the UK. Its collaboration with Australian retailer The Iconic has also shown promising results.
Looking ahead, Sosandar reported a positive start to October, with revenue ahead of last year across all sales channels. The company remains optimistic as it heads into its seasonal peak, maintaining a strong gross margin.
However, the retailer has revised its revenue expectations for the full year 2025 to £40 million, down from previous market expectations of £45.6 million. Despite this, pre-tax profit expectations remain unchanged at £1 million, supported by the company’s strong margins, evolving customer engagement strategy, and careful management of overhead costs.
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