Last checked at 9 Apr 2019 07:00
Date: | 09 April 2019 |
On behalf of: | Sosandar plc ('Sosandar' or 'the Company') |
Embargoed until: | 0700hrs |
Sosandar plc
Trading Update
Exceptional year on year growth across all key metrics
Sosandar PLC (AIM: SOS), the online women's fashion brand, is pleased to announce the following trading update for the year ended 31 March 2019.
Highlights:
· | The Company expects to report very strong revenue growth of 228% to £4.44m, comfortably in line with market expectations. |
· | Continued expansion of a loyal and engaged customer base: |
o Repeat orders increased 389% to 55,828 | |
o Number of orders increased 224% to 102,742 | |
o New customers up 131% to 46,914. | |
o Customer database increased 95% to over 105,000 | |
o Conversion rate increased 76 bps to 2.92% | |
o Average order value increased 10% to £103.19 | |
· | Gross margin of 55%, up 558 bps year-on-year, reflecting continued strong demand for product and buying efficiencies. |
· | Increased efficiencies in marketing spend across all channels with significant CPA improvements. |
· | Returns of 50% reflect the anticipated improvement in the second half of the year from the 52% reported at interim results. |
· | A significant investment in stock of £260k was made at the end of Q4 to fulfil the peak demand going into Q1 of the new financial year. |
· | Strong balance sheet with net cash of £3.64m as at 31 March 2019. |
Sosandar has continued to trade strongly in Q4 with the emphasis on full price sales and the loss for the year is expected to be in line with market expectations. During this period, we focused on controlled acquisition spending which was 62% less than in Q3. Marketing funds have been strategically re-invested into the peak seasonal months of April-June to maximise the return on investment and sales, whilst also delivering bottom line efficiencies. Sosandar is in a strong position to continue its growth momentum going into the new financial year.
The Company has made substantial financial and operational progress during the year, driven by both a popular and growing product range and the continued success of its content and data driven marketing strategy.
The Group intends to publish its final results for the year ended 31 March 2019 in early July.
Ali Hall and Julie Lavington, Joint CEOs, commented:
"We are delighted to be reporting a year of substantial growth across all our key metrics including revenue, orders and new customers. This has been reflected in market expectations which have been upgraded twice during the year and we have now built a strong foundation on which Sosandar can continue to grow as a brand, providing our underserved market with quality, affordable clothing.
"Over the year, we have been focused on both growing our loyal customer base, underpinned by the continued delivery of high-quality clothing, and increasing the efficiency of our spend. Through increasingly sophisticated methods, we have managed to retain a high level of sell-through, alongside good ongoing full price sales, and significantly increased the efficiency of marketing costs.
"We are incredibly excited by Sosandar's long term prospects and look forward to the new financial year with confidence."
Enquiries
Sosandar plc | www.sosandar.com |
Julie Lavington / Ali Hall, Joint CEOs | c/o Alma PR |
Shore Capital Patrick Castle / Mark Percy / James Thomas
| +44 (0) 20 7408 4090
|
Alma PR (Financial PR) | +44 (0) 20 3405 0205 |
Rebecca Sanders-Hewett / Susie Hudson / Sam Modlin | sosandar@almapr.co.uk |
About Sosandar PLC
Sosandar is an online womenswear brand, specifically targeted at a generation of women who have graduated from throwaway fashion and are looking for quality, affordable clothing with a premium, trend-led aesthetic. This is a section of the market that is currently being underserved.
Sosandar was launched in September 2016. The Sosandar business model is built around using trend-led, exclusive designs produced in-house and then manufactured using a variety of global suppliers. Sosandar caters for a growing market of fashion conscious women, while utilising an outsourced logistics provider that can support its planned growth over the coming years.
Sosandar's founders are Ali Hall and Julie Lavington, who previously launched and ran high street fashion magazine Look, as editor and publishing director respectively. They have a combined experience of over 35 years in the fashion industry, including in the design, manufacture and sale of fashion ranges for some of the UK's high street retailers, including Debenhams, Office, Oasis and JD Williams.
More information is available at www.sosandar-ir.com