Sosandar PLC Q1 Trading Update (1858S)
07 July 2020 - 4:00PM
UK Regulatory
TIDMSOS
RNS Number : 1858S
Sosandar PLC
07 July 2020
Date: 7 July 2020
On behalf of: Sosandar plc ('Sosandar' or 'the Company')
Embargoed until: 0700hrs
Sosandar plc
Q1 Trading Update
Year on year growth with significantly reduced losses as a
results of strategy shift implemented in response to Covid-19
Sosandar, the online women's fashion brand, provides the
following Q1 trading update covering the period 1 April 2020 to 30
June 2020.
The Company is pleased to report that the resilient performance
seen in April and May continued throughout June. Total revenue in
Q1 increased by 54% year on year, demonstrating the strength of the
Company's business model and continued demand for its offering.
This growth represents strong performance in a difficult trading
environment, whilst noting that Q1 was the lowest revenue quarter
in the prior year.
As a result of the growth in sales together with a significantly
decreased marketing spend, the Company has seen losses in Q1
reduced by c.70% compared to the same period in the prior year. In
June, the Company's monthly sales performance improved again, with
a strong gross margin from a shift back to full price purchases
following some promotion and discounting in early April. As a
result, the Company recorded results very close to breakeven in
June.
The Q1 results have been driven by the shift in strategy
implemented in response to Covid-19 and the associated lockdown.
This has included diversified product ranges adapted to changes in
customer demand, with success in areas such as denim, linen and
casual summer dresses, in addition to the industry wide growth in
loungewear.
The Company has also significantly reduced marketing spend, with
increased frequency and a focus on high quality, relevant
communications successfully engaging with the customer base and
converting prospects that have been established over time. As a
result, the Company has seen a 24% increase in new customers over
the quarter, and robust growth in return customers, demonstrating
the longer-term impact of its acquisition marketing strategy in
previous periods, and the benefits of holding a larger
database.
The Board believes there continues to be a very significant
opportunity available to Sosandar and the Company anticipates that,
in line with the external environment improving, it will recommence
controlled and careful new customer acquisition towards the end of
Q2 and beyond.
Cash at 30 June 2020 remained broadly flat at GBP4.4m, showing
only a very marginal decrease since 31 April 2020. Whilst the
Company remains prudent in its approach to discretional spend,
carefully monitoring KPIs and cash management, it expects to
cautiously increase marketing spend and investment in new products
going forward in order to accelerate top line growth.
Full year results
The Company expects to announce its financial results for the
year ended 31 March 2020 in August and will confirm the date in due
course.
Enquiries
Sosandar plc www.sosandar.com
Julie Lavington / Ali Hall, Joint c/o Alma PR
CEOs
Shore Capital
Patrick Castle / Mark Percy / James
Thomas +44 (0) 20 7408 4090
Alma PR Limited (Financial PR) +44 (0) 20 3405 0205
Rebecca Sanders-Hewett / Susie Hudson sosandar@almapr.co.uk
/ Sam Modlin
About Sosandar PLC
Sosandar is an online womenswear brand, specifically targeted at
a generation of women who have graduated from throwaway fashion and
are looking for quality, affordable clothing with a premium,
trend-led aesthetic. This is a section of the market that is
currently being underserved.
Sosandar was launched in September 2016. The Sosandar business
model is built around using trend-led, exclusive designs produced
in-house and then manufactured using a variety of global suppliers.
Sosandar caters for a growing market of fashion-conscious women,
while utilising an outsourced logistics provider that can support
its planned growth over the coming years.
Sosandar's founders are Ali Hall and Julie Lavington, who
previously launched and ran high street fashion magazine Look, as
editor and publishing director respectively. They have a combined
experience of over 35 years in the fashion industry, including in
the design, manufacture and sale of fashion ranges for some of the
UK's high street retailers, including Debenhams, Office, Oasis and
JD Williams.
More information is available at www.sosandar-ir.com
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END
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