// Sosandar half-year sales expected to soar 53% to £2.82m after “accelerated investment”
// It also posted 84% increase in second quarter sales and a 112% jump during September
// Meanwhile, October is already the first month that its net revenue has surpassed £1m
Shares in Sosandar soared on Monday after it announced a massive jump in half-year sales following an “accelerated investment” in its marketing strategy.
The AIM-listed online fashion retailer reported in a trading update that revenues for the six months ended September 30 will be £2.82 million, a 53 per cent jump year-on-year.
Sosandar also posted an 84 per cent increase in sales during its second quarter and a 112 per cent jump during September alone.
Meanwhile, the retailer said October was already the first month that its net revenue – post-returns – has surpassed the £1 million mark.
READ MORE:
- Sosandar’s investment pays off ahead of AGM
- Sosandar raises £7m via new share sales
- Sosandar losses slashed as revenues skyrocket
Sosandar said that during the half-year period, it invested in marketing and advertising across TV and digital billboards across escalators at key London train stations and tube stations.
It also invested in its design, buying, merchandising and garment technology teams, and expanded its ranges.
The online retailer now plans to accelerate growth by investing more into its TV advertising, but because of this it anticipates marketing expenditure to be higher than initially planned for the full-year.
Sosandar said this higher spending was predicted to “significantly enhance future growth” by growing its customer database and increasing purchase frequency from a “loyal and highly engaged following”.
“Our ability as an online retailer to employ an agile strategy resulted in us focusing our customer acquisition activity on the important autumn months towards the end of the period and carrying into current trading,” Sosandar co-founders Ali Hall and Julie Lavington said.
“As expected, the accelerated investment into marketing and product is producing strong results with record months in September and October.
“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 will reveal its full interim results on November 27.
Click here to sign up to Retail Gazette’s free daily email newsletter
