Sosandar shares leap as new customers drive revenue growth

(Sharecast News) - Shares in Sosandar surged on Monday as the company reported a jump in interim revenue after an influx of new customers and investment in product teams drove performance.
The online fashion retailer said it expected to report revenue of £2.8m for the six months ended 30 September, a 53% increase over the same period last year, with second quarter turnover up 84% and September up 112% over the comparable periods in 2018.

The AIM-company said October is already the first month that its net revenues have exceeded £1m.

The improvement came as Sosandar opted to hold back first-quarter customer acquisition funds to invest in the critical autumn and winter periods, while also investing in product teams.

The first half of the year saw the company's customer database grow by 76% to 148,884, with further gains expected after the launch of new marketing initiatives such as TV advertising testing of digital panel use across escalators at key London train and underground stations.

Investment in product teams across all areas, including design, buying, merchandising and garment technology, has resulted in a widened product range that now includes more product types, and new categories such as denim and accessories.

Joint chief executives Ali Hall and Julie Lavington said: "We are seeing strong engagement from our ever-expanding base of loyal existing customers and this will continue to increase as our product range grows further. We are delighted with the success of our new advertising activity and the Board is confident that accelerating our future growth by increased investment in marketing (especially via TV) in this financial year is the right decision for our business.

"With a widened product range offering, strong balance sheet, and a broadened, aggressive, and increasingly effective marketing strategy, we are confident about the full year."

Sosandar shares were up by 22.41% at 19.58p at 0959 GMT.