Sosandar is expecting a rise in revenue for fiscal 2024 despite a pre-tax loss in the first half. They aim to maintain profitability and anticipate expansion plans by opening high street stores in 2024.
Sosandar, the popular U.K. online women's fashion brand, announced that it is expecting a rise in revenue for fiscal 2024. However, the company experienced a pre-tax loss in the first half due to a reduction in promotional activity.
Sosandar projects a revenue of £46.8 million ($57.0 million) for the year ending March 31 and aims to maintain profitability. Looking ahead to fiscal 2025, the company anticipates a 17% increase in revenue, reaching £54.6 million.
During the six-month period ending on September 30, Sosandar reported a pre-tax loss of £1.3 million, contrasting with a profit of approximately £100,000 in the previous year. This decline was primarily driven by higher overhead costs and reduced revenue in the second quarter following a trial reduction in promotional activities.
Despite these challenges, the company achieved an overall revenue growth of 6% in the first half, totaling £22.3 million. While the number of orders declined by 20% to 276,989, the average order value increased by 11% to £99.
Sosandar has exciting plans to expand its presence by opening its first high street stores in the spring of 2024.
Co-Chief Executives Ali Hall and Julie Lavington expressed their confidence in Sosandar's growth potential and profitability, affirming that the strategic decision to reduce promotional activity will ultimately lead to greater value for shareholders.
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