Sosandar Plc (AIM:SOS) has said it remains on course to turn a profit this year after the women’s fashion brand enjoyed a strong Christmas period.
Third quarter revenue came in at £12.2 million, Sosandar (AIM:SOS) reported on Monday, which was off the £14.3 million seen a year earlier, but up 50% on the first and second quarters.
Gross margins climbed from 58.3% to 64.7% year on year, driving a “continued positive swing in profit before tax trajectory”.
Stronger margins reflected a planned reduction in promotional activity as Sosandar continued to transition towards becoming a “true multi-channel retailer”.
Partywear, alongside core knitwear and denim sales had been strong in the run up to Christmas, with Sosandar flagging positive traffic across its four stores and online.
“Trading with the company's well-established third-party partners continued to be strong, with the success of the Sosandar product resulting in Sosandar being one of the top-selling brands across all third-party partners including Next and M&S,” it added.
Sosandar said it remained on course to match expectations for a full-year £1.0 million pre-tax profit, against a £0.3 million loss in 2023, “despite the well-publicised challenging macro-environment”.
Lease agreements for new stores in Bath and Harrogate were also unveiled in the update.