07:00 Wed 13 Jan 2021
Sosandar PLC - Trading Update
Date: |
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On behalf of: |
Sosandar plc ('Sosandar' or 'the Company') |
Embargoed until: |
0700hrs |
Sosandar plc
Trading Update
A record quarter and continued substantial reduction in EBITDA loss
Sosandar, the online women's fashion brand, is pleased to provide the following trading update covering the three-month period ended
The Company has delivered a record quarter for revenue and number of orders along with a substantial improvement in EBITDA versus the same period in the prior year.
Highlights:
· Revenue of
· EBITDA loss reduced by c.60% compared to the same period in the prior year
· Continued agility in responding to changing Covid restrictions, pivoting from successful customer acquisition strategy between September and November to pulling back on marketing and trading the expanded customer database in December as restrictions became more severe
· December revenue was equal to revenue in
· Continued improvement in returns, reducing to 46% (2019: 49%), reflecting the change in product mix
· Strong sales with
· Net cash of
This record performance for a quarter, delivered against very strong prior year comparatives, has been achieved despite the challenging market backdrop and a significant reduction in marketing spend. Utilising learnings from the previous year, the Company has been able to maximise its return on investment from marketing, successfully tailoring its approach in response to further national restrictions, switching between carefully controlled customer acquisition between September and November to the preservation of cash and trading the database during December.
The investment made during the year in expanding the product range has been pivotal to the trading performance, with new ranges resonating well with customers. Loungewear, knitwear, denim and outerwear have traded particularly well. Further range development is ongoing with a capsule range of activewear launched in
Following growth in the customer database through autumn, the Company is well placed to successfully navigate the next few months, with the focus being mostly on engaging with existing customers as well as prospects while the current lockdown measures endure. The Company remains flexible in its approach; product ranges for spring have been carefully planned with Covid-19 restrictions in mind and therefore focusing more on casual wear. January trading has already started well, and knitwear, loungewear, outerwear and denim all continue to perform very strongly.
Sosandar has a diversified and flexible supply base and does not expect to see any significant impact from Brexit on its ability to service its customers.
The Company has continued to demonstrate strong cash management, with
"We are extremely pleased to report another period of record performance, particularly given the significantly reduced marketing spend and extremely strong comparatives achieved in the prior year. It is testament to the relevance and quality of our product that we have been able to deliver such a performance without the seasonal strong sales of party dresses, and shows our ability to understand and cater to our customers' needs.
The agile nature of our business has enabled us to adapt quickly to the challenges and uncertainties within the retail sector. The resilience that the business has shown both operationally and financially demonstrates the strength of our business model and relevance of our products and customer engagement across a large end market.
Whilst the external environment continues to be uncertain, the scale of our opportunity has not changed, and the results we have delivered reaffirm our belief that there is significant further demand for our products within our target market."
Enquiries
Sosandar plc |
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c/o Alma PR |
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Shore Capital (Nominated Adviser & Broker)
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+44 (0) 20 7408 4090
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Alma PR Limited (Financial PR) |
+44 (0) 20 3405 0205 |
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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
Sosandar's founders are
More information is available at www.sosandar-ir.com
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