Sosandar Faces Deficit Despite Augmented Sales

In spite of escalating revenues, Sosandar has incurred a loss in its recent financial period as it divulged the first chosen sites for its UK stores.

The fashion label, in the process of shifting to a multi-faceted model, is gearing up to unveil its initial outlets in Chelmsford, Essex, and Marlow in Buckinghamshire in September.

For the fiscal year ending on 31 March, Sosandar reported a deficit of £0.3m, marking a reversal from the £1.59m profit of the previous year. This transformation was primarily due to a £1.3m loss in the first half, which offset a £1m profit in the latter half.

Despite a 9% boost in sales to £46.3m during the period, attributed to fresh collaborations with third-party suppliers in the UK and overseas.

Sosandar conveyed optimism regarding its first-quarter outcomes for the ongoing year, demonstrating a shift towards prioritizing margins over discounts in anticipation of the launch of novel stores.

Notwithstanding a 28% drop in sales to £8.2m, pre-tax deficits lessened from £0.8m to £0.2m.

The corporation foresees that the introduction of its premiere standalone outlets will bolster sales in the forthcoming years.

The Co-CEOs of Sosandar, Ali Hall and Julie Lavington, affirmed, “Our progression toward achieving a pre-tax profit margin that surpasses 10% in the medium term, accompanied by revenues exceeding £100m, through concentrating on sustainable profitable expansion rather than merely amplifying revenue through promotions.”

They highlighted, “Leveraging our brand worth to construct a marketing network via our stores enables us to directly interact with our client base.”

The executives also shared their enthusiasm for the imminent launch of Sosandar outlets at the disclosed locations later this year.

Image Source: Sosandar.com