Sosandar hails exceptional trading as it hits sales milestone

(Sharecast News) - Online retailer Sosandar called autumn trading "exceptional" on Wednesday, after a marketing campaign helped it surpass net monthly revenues of £1.0m for the first time.
The Aim-listed womanswear specialist said total sales for the six months to 30 September jumped by 53.0% to £2.82m and that momentum had continued into the second half.

Chief executives Ali Hall and Julie Lavington said there had been "record" periods of trading in September and October, "both of which were up over 100% versus the prior year. October was the first month we saw net revenues (post returns) surpass £1m, a performance which November is on course to exceed."

In September, Sosandar launched its a television advertising campaign, which helped e-mail sign ups surge 224% during the month.

"We are delighted to be reporting on a period of significant progress for Sosandar," noted Hall and Lavington. "The investments that were made in the latter part of the second quarter have resulted in exceptional autumn trading."

Interim gross profit increased from £1.01m to £1.5m, but the underlying EBITDA loss widened from £1.96m to £2.7m following increased investment in staff, product and marketing.

Returns decreased to 49%, compared to 52% a year earlier, which Sosandar attributed to "increasing data in business influencing product development". The customer database grew 76%, with active customers increasing by 70%.

Greg Lawless, analyst at Shore Capital, Sosandar's nominated advisor, said: "Sosandar's test and repeat marketing campaigns, including selective TV advertising slots on, among others, ITV's Good Morning Britain and I'm a Celebrity, is resonating extremely well. This is raising both brand awareness and acquiring new subscribers.

"In our view, the company remains firmly on track to break even in 2021. We believe that the company is on the right path to scale and is appropriately investing in future growth."