Sosandar thrives as H1 excels and partywear, knits and coats sell well
Fast-growing womenswear e-tailer Sosandar’s first-half results on Tuesday showed that the business continues to thrive. It has enjoyed strong SS21 and autumn trading and the firm has even recorded its “first EBITDA-positive months” in October and November.
It said that in H1 (the six months to the end of September), revenue surged 184% and trading remains ahead of full-year market expectations, which are for annual revenue of £24.4 million and an EBITDA loss of £1.2 million.
Admittedly, the stock exchange listed company is still at a relatively early stage of its development so triple-digit growth is far from surprising and growth is likely to stay elevated for some time. That 184% uplift still meant revenue was only £12.2 million in the first half, but there’s no denying that the current trajectory could mean the brand being significantly bigger within just a few years.
It said that gross profit during the six-month period of £6.9 million was a 207% increase year-on-year. And the EBITDA loss for the six months narrowed further to only £0.99 million.
The good news included active customer numbers increasing by 41% to 191,000, while the conversion rate at 3.91% was up from 2.58% a year ago. And average order frequency increased by 19% to 2.21 times.
And while the company saw a 153% increase in order volumes, it didn't see the kind of drop in average order values that often comes with fast expansion. These were maintained at £86.
It also maintained a strong return on investment from marketing, with Cost per Acquisition (CPA) continuing at half the pre-pandemic level.
All of that was helped by the continued expansion of the product range across all categories, offering a broader choice to the customer that led to a rapid sell-through across all channels.
It was also aided by strong trading with third parties, including big names M&S, Next and John Lewis, across all product categories.
And as mentioned, the two months since the first half ended have also been strong. Revenue for October and November rose 120% year-on-year and the company was EBITDA-positive in both of those months.
That came on the back of a record number of website visits and orders in recent weeks, and a conversion rate that was even better than that of the first half at 4%.
Product across all categories has been selling this season with partywear, knitwear and outerwear particularly strong. And it hasn't seen any material impact so far from the supply chain disruption that has affected much of the industry.
It seems the company benefited from anticipating high demand as Covid restrictions were eased and its decision to bring in stock early for autumn, including pieces for dressing up and staying warm — partywear, coats, boots, and knits.
While that decision would have come with risks had restrictions been reimposed or had shoppers simply remained cautious, it actually allowed it to meet the “exceptionally strong demand for our product with sequins, Christmas jumpers and fur coats emerging as best sellers”.
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