UK retailer Sosandar reports 6% revenue surge in H1 FY24

20 Oct '23

2 min read

Pic: Sosandar

Insights

UK fashion retailer Sosandar reported a 6 per cent rise in H1 FY24 net revenue to £22.3 million but posted a £1.3 million loss before tax.
The company's gross margin rose by 140 basis points to 55.8 per cent from 54.4 per cent in the previous year.
While average order value and unit value increased, conversion rates and the number of orders dropped.

In its half-yearly trading update for fiscal 2024, UK-based fashion retailer Sosandar reported a 6 per cent increase in net revenue, amounting to £22.3 million, compared to £21 million in the first half of fiscal 2023 (H1 FY23). The company's gross margin also improved, rising by 140 basis points to 55.8 per cent from 54.4 per cent in the previous year.

However, Sosandar posted a loss before tax of £1.3 million, compared to a profit of £0.1 million in the first half of the prior fiscal, the company said in a press release.

Sosandar's key performance indicators (KPIs) for its online website showed a mixed bag of results. The average order value (AOV) increased by 11 per cent to £99, and the unit value also grew by 11.6 per cent to £46. However, the units per order remained static at 2.2. Meanwhile, conversion rates dipped by 19.6 per cent to 3.6 per cent, and website traffic decreased slightly by 0.7 per cent to 7.7 million visitors. The number of orders also fell by 20.2 per cent, recording 276,989 orders compared to 347,137 in the same period last year.

"We are extremely excited about the next stage of our growth journey. Our decision to open our own stores is the logical next step as we look to offer our customers more ways to engage and shop with Sosandar. We know that the added value of being able to touch and feel our clothes will appeal to our target customers. With a clear rollout plan in place and strict criteria around the location of potential stores, we are confident that our stores will enable us to accelerate our market share and increase the awareness of our brand,” said Ali Hall and Julie Lavington, Co-CEOs.

Fibre2Fashion News Desk (DP)

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