Sosandar, an online womenswear retailer, has made significant strides towards profitability. The company reported strong revenue growth and a substantial reduction in EBITDA losses for the latest financial year. Additionally, Sosandar experienced a strong start to the new financial year, with first-quarter revenue increasing by 256% compared to the previous year.

In FY21, Sosandar saw a 35% growth in revenue, reaching £12.2 million. This performance is particularly impressive considering the volatile trading environment. The company’s gross margin remained stable at 48%, with a slight dip from 48.5%.

Sosandar managed to narrow its EBITDA loss to just £2.92 million from £7.66 million in the previous year. This improvement can be attributed to various factors, including increasing scale, improved return on investment (ROI) on marketing efforts, and a focus on cost management. The company also maintained a healthy cash position, with approximately £4 million in cash at the end of the year. A low cash burn rate since July 2020 allows for continued investments in operations.

During FY21, Sosandar expanded its product range by adding new styles, resulting in a 60% increase. The introduction of new categories, such as loungewear, active and leisurewear, proved to be valuable enhancements to its product offering. The company successfully expanded its casual and smart-casual clothing ranges, with denim, knitwear, and outerwear performing exceptionally well. Furthermore, Sosandar established partnerships with renowned retailers John Lewis, Next, and Marks & Spencer.

Sosandar was successful in attracting and retaining new customers. Repeat orders increased by 40% in the last year, and the average order frequency improved by 23%. The expanded product range resonated well with customers, which led to a strong conversion rate of 3.09%, up from 2.67%. However, changes to the product mix during the pandemic resulted in a decrease in the average order value from £97.14 to £82.70.

The first quarter of the new financial year showcased significant strength, with continuous monthly improvements. Sosandar achieved a record-breaking quarter for revenue, reaching £5.7 million. Compared to the previous quarter, Q1 revenue increased by 45%, driven by robust sales of spring/summer products early in the season. Notably, the number of orders tripled year on year, recording record-breaking figures for both new and repeat orders. The cost of customer acquisition was also less than half of pre-pandemic levels.

Sales growth in Q1 was observed across all key categories, with both casual and going-out styles selling rapidly. The top-performing products were dresses, tops, knitwear, and denim.

Sosandar’s performance in FY21 and the strong start to the new financial year set a promising trajectory for the company’s profitability. With its diverse and expanding product range, successful partnerships, and a growing customer base, Sosandar is well-positioned to continue its upward trajectory in the online womenswear market.

Useful Links:
Sosandar Official Website
Sosandar Partnerships Article