Sosandar has downgraded its profit and sales guidance for the year as it manages the impact of the M&S cyberattack on its sales.

The fashion brand said it was taking a “prudent view” of its forecasts after it made “no sales” through M&S, which is its second largest third-party partner, since mid-April and its decision to pause new store openings to focus on profitable growth.

It expects disruptions on sales through M&S to continue through to “at least August”.

As a result, the online retailer has cut £2.6m from its full-year sales expectations and expects to deliver an adjusted pre-tax profit of £400,000, down from the £1.4m originally forecasted.

Despite the loss of income from M&S, Sosandar reported it had returned to revenue growth during its first quarter with sales surging 15% to £9.5m.

The trading update came as the retailer reported an adjusted pre-tax profit of £200,000 for the year to 31 March, up from the £300,000 loss the year before.

Sales plummeted 19% to £37.1m, which it said was a reflection of a deliberate transition away from price promotional activity.

Sosandar co-chief executives Ali Hall and Julie Lavington said: “During the last year we’ve strengthened the foundations of the business, which will enable us to deliver our growth and profit ambitions going forwards.

“Taking the decision to reduce price promotions has resulted in an expected reduction in revenue but significantly improved margins and cash generation which, in turn, has allowed the group to maintain a robust balance sheet and self-fund its growth plan.

“We have taken clear learnings from the trajectory of our stores in market towns versus shopping centres and are focused on getting our existing portfolio to profitability before opening any further stores.

“This decision, alongside the continuing impact from the Marks & Spencer cyber incident on our third-party sales, means we are moderating our expectations for revenue and profit growth in the current year.”

The pair added: “Nonetheless, we believe we are now at an inflection point, with the foundations laid for profitable, cash generative growth, and we have returned to revenue growth in Q1 FY26.

“We will continue to leverage our brand equity and scale the business through our multiple channels and are excited for what lies ahead for Sosandar.”

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