Sosandar PLC - Q1 Trading Update
On behalf of:
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
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.
Full year results
The Company expects to announce its financial results for the year ended
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c/o Alma PR
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+44 (0) 20 7408 4090
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+44 (0) 20 3405 0205
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
Sosandar's founders are
More information is available at www.sosandar-ir.com
This information is provided by RNS, the news service of the
Quick facts: Sosandar
Market Cap: £31.96 m
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