Shares in Sosandar (AIM:SOS) fell 16% in early trading after the fashion brand missed revenue and profit expectations for the year ended March 31, despite reporting progress on its shift to full-price, multi-channel retailing.
Revenue came in at £37.2 million, below market forecasts of £38.5 million, while profit before tax is expected to be no less than £0.5 million, half the £1 million analysts had anticipated.
The company blamed weaker sales in February for the shortfall but said gross margins improved to 62.5% from 57.6% last year, reflecting its strategy to reduce discounting.
Sosandar also opened its first six standalone stores during the year, contributing to an uptick in full-price sales through March and into April.
In early trading, the shares were off 1.05p at 5.7p.