Read on FashionNetwork.comSosandar Returns to Revenue Growth in H1 Despite Widening Losses
British womenswear brand Sosandar has reported a return to revenue growth in the first half of its fiscal year, with a 15% increase to £18.7 million driven by strong own-site performance and resilient margins. However, the company's losses widened to £1.1 million, primarily due to the impact of new physical stores and the M&S cyber incident. The brand's own-site revenue surged 28% year-on-year, supported by increased traffic and improved conversion rates, while maintaining a strong gross margin of 62.2%.
British womenswear brand Sosandar has demonstrated resilience in the challenging retail landscape, reporting a return to revenue growth during the first half of its fiscal year ending September 2025. The company's performance highlights the ongoing evolution of retail strategies as brands navigate the balance between digital dominance and physical expansion.
Financial Performance Overview
Sosandar reported a 15% year-on-year revenue increase to £18.7 million for the six-month period, marking a significant turnaround for the brand. This growth was primarily driven by exceptional performance on the company's own website, where revenue surged 28% compared to the same period last year. The brand maintained a robust gross margin of 62.2%, reflecting what the company described as a "strategic focus on margin enhancement" despite flat performance in this metric.
Challenges and Loss Widening
Despite the positive revenue growth, Sosandar faced challenges that resulted in a widened loss before tax of £1.1 million, compared to £0.7 million in the previous year. The company attributed this performance to several factors, including the traditional second-half weighting of profitability and the impact of operating its own physical stores. Additionally, the M&S cyber incident contributed to the financial pressures during the period.
Store Expansion Strategy
The company's physical retail expansion has been a double-edged sword for Sosandar. Over the past year, the brand opened six standalone stores across the UK, which currently represent just 5% of total net revenue. While these locations have brought challenges, particularly in shopping center locations like Cardiff and Gateshead, they have also introduced significant benefits. According to company reports, 60% of customers shopping in-store are new to the Sosandar brand, and the company has observed "a notable uplift in both traffic and online revenue in those areas where we have opened stores."
Future Outlook and Current Trading
Sosandar remains optimistic about its future prospects, with current trading reported to be in line with full-year expectations for both revenue and profit before tax. The company expects to achieve £43.6 million in revenue and profit before tax of £0.4 million for FY26. Co-CEOs Ali Hall and Julie Lavington expressed satisfaction with the business performance, noting that AW25 has delivered "another robust trading performance, with customers continuing to respond positively to our unique collections across both occasion and everyday dressing."
