Sosandar remains in the red despite soaring sales

The online fashion retailer reported a loss before tax of £7.66m in the full year to March 31, as sales grew 103% to £9.03m. 

Sosandar attributed the losses to its investment in its team, supply chain and marketing spend, which has positively impacted its first quarter sales during the coronavirus pandemic. 

It has also recorded a 111% increase in active customers to 131,811, and a 129% increase in customer database.

In the first quarter, since March 31, its customer base grew by an additional 8% despite a 85% reduction in marketing spend.

Sosandar also reported a 57% increase in sales year on year in the first quarter, with plans to launch its products on John Lewis and Next’s websites in the second quarter.

Hall and Lavington said: “We’re delighted to report another year of growth, and one in which we achieved a significant shift in terms of customer base and infrastructure, providing stronger foundations for continued future growth. 

“This proved especially valuable during lockdown where having a larger base of customers, combined with an enhanced product offering, allowed us to navigate difficult trading conditions, growing our customer base further and increasing their order frequency whilst preserving cash. This is testament to the brand and the market opportunity we identified.

“The resilient performance achieved throughout Q1 has continued into Q2 of our current financial year. Our increasing confidence underpins our decision to begin increasing marketing spend with careful, controlled investment into customer acquisition from September to November, subject to any further impact of Covid-19.

“We remain cautiously optimistic about the coming months and more excited than ever about the longer-term prospects for Sosandar.”