// Sosandar sales climb 54% in the quarter to June 30
// The retailer cut losses by 70%
Sosandar has seen its sales climb during the first quarter and has significantly cut its losses by 70 per cent.
Total sales at the online fashion retailer rose by 54 per cent year on year in the quarter to June 30, when losses were reduced thanks to a lower marketing spend.
The retailer said the performance showed “the strength of the company’s business model and continued demand for its offering”.
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In June, Sosandar’s sales rose, “with a strong gross margin from a shift back to full price purchases following some promotion and discounting in early April” and the business was close to breakeven.
“The results have been driven by the shift in strategy implemented in response to Covid-19 and the associated lockdown,” Sosandar said.
“This has included diversified product ranges adapted to changes in customer demand, with success in areas such as denim, linen and casual summer dresses, in addition to the industry wide growth in loungewear.
“The company has also significantly reduced marketing spend, with increased frequency and a focus on high quality, relevant communications successfully engaging with the customer base and converting prospects that have been established over time.”
There was a 24 per cent increase in new customers over the quarter, and “robust growth in return customers”.
Sosandar said there “continues to be a very significant opportunity available” and that, “in line with the external environment improving, it will recommence controlled and careful new customer acquisition towards the end of quarter two and beyond”.
At the end of June, cash “remained broadly flat at £4.4 million”.
Last month, Sosandar appointed of Stephen Dilks as its new finance director, who will take over from James Bowling, the current head of finance.
Dilks will join Sosandar on September 7 and Bowling will remain in his role until September 18 to ensure an orderly handover.
During the same month, Sosandar also announced its new partnership with John Lewis and Next which will see it selling its clothing through the retailers’ websites.
The new deal with department store chain John Lewis and fashion retailer Next means Sosandar can better reach its audience by selling its products through the retailers’ websites from this autumn.
Sosandar said at the time that it benefited from lockdown thanks to a 98 per cent increase in traffic and a shift to “more casual ranges” as shoppers sought comfort when shopping for clothing.
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