Womenswear retailer Sosandar has released a full-year trading update (to the end of March) and said that it’s been a period of “strong strategic progress with a positive year-on-year swing in margin and PBT”.

It added that it’s at an “inflection point back to top-line growth”.

In the year, the company “delivered what we set out to achieve: growth in margin and profit before tax [PBT], a reduction in price promotional activity and opening our first own stores”.

It added that it’s “now beginning to see the results of our disciplined approach coming through in our performance. March sales were in line with the prior year and this momentum has continued into April to date, with both own-site sales and sales as a whole ahead of the prior year”. 

That said, PBT for the year “was softer than we had hoped, although a substantial positive swing compared with FY24. This was driven by slower February sales, but we continued to stick to our strategy and did not chase volume through implementing price promotions”.

PBT is expected to be not less than £0.5 million, which is better than a loss of £0.3 million in the previous year and a loss of £0.7 million in the first half of FY25.

Lower revenue of £37.2 million (down from £46.3 million) reflects the “continued transition away from price promotional activity”. And the improved gross margin of 62.5%, up from 57.6% in the prior year, reflects the continued focus on margin enhancement.

The company, which was formerly a pureplay e-tailer, opened its first six stores in FY25, and as mentioned, it said that post-year-end, April trading has “been strong, ahead of the prior year, building on the momentum seen in March and providing further confidence in the continued execution of the company’s strategy”.

UK retailers have had a lot to complain about recently, including business rates and National Insurance contributions. But one of their biggest bugbears is the so-called tourist tax and the government has signalled that it might be open to revisiting the issue.

VAT-free shopping for tourists was all-but-abolished in the wake of Brexit, despite retailers having expected/hoped that it would be expended to EU shoppers, potentially sparking a tourist shopping boom in Britain.

The then-Conservative government insisted VAT refunds cost it too much revenue (said to be £2 billion a year) and didn’t “directly benefit” British people. That was despite studies claiming the contrary and evidence that affluent consumers were shopping in Paris and Milan instead of the UK’s destination cities.

But while the current Labour government has stayed tight-lipped on the subject so far, the Culture Secretary has said in an interview with Elle that she’s heard “very loud and clear” calls from figures in fashion to bring back the perk. Lisa Nandy stressed that change isn’t currently on the agenda but the government would be “happy to look at the evidence”.

She said that if VAT-free shopping can be shown to be “a benefit, it’s something that we’ll explore, but at the moment, that’s not something we’re proposing to do”.

Since VAT-free shopping was scrapped in 2021, reports such as one from the Centre for Economics and Business Research have presented strong evidence to support its return. The CEBR claimed it cost the country £11.1 billion in lost GDP annually and means two million people are put off from visiting Britain.

Meanwhile, other reports have shown that European countries offering the VAT-free perk have seen higher tourist flows.

And Britain’s potential benefit from bringing back the perk wouldn’t only be about returning to the pre-Brexit status quo. If it was extended to EU shoppers, it would make the UK the only European destination to offer tax-free shopping to the many millions of consumers on its doorstep.

While the Treasury would lose the VAT on the goods sold, the claimed boost to GDP would come from the economic activity that higher tourist flows would spur. That would mean higher retail sales and higher retailer profits, more retail jobs, more hotels and restaurants booked and all the other activities tourists indulge in, all of which would result in more tax going to the Treasury.

Kith has teamed up with Adidas Football to debut a new collection that redefines the intersection of sport and lifestyle, set to launch this Friday. 

The collaboration spans apparel, accessories, and footwear, spotlighting co-branded logos and signature silhouettes. Standouts include a leather Stadium Coat with signature Adidas stripes and wraparound belt, a tailored Suit Jacket & Pant made from a premium wool-blend, and a reimagined adidas tracksuit offered in beige and green with custom knit detailing.

Kith and Adidas also collaborated with ESPN on exclusive football jerseys and a Hybrid Trench Coat. The ESPN Jersey is made of lightweight polyester with bold color-blocking, italicized Kith Monogram artwork, and triple branding from Kith, Adidas, and ESPN. The Nappa leather Hybrid Trench Coat complements the jersey with striped sleeve detailing, a zippered interior, and a multi-colored satin lining featuring ESPN branding.

Kith also tapped longtime collaborators Chase and DHL Express to create additional long- and short-sleeve jerseys. 

Accessories round out the offering with a wide range of headwear, scarves, and bags. Caps, bucket hats, acrylic scarves as well as a leather crossbody and duffle bag are redesigned to showcase a variety of Kith for Adidas Football branding. 

The footwear lineup features four custom Adidas styles: the Predator Mania with Kith Monogram artwork, a tonal Predator 2002 IC indoor cleat, the leather Koresco National in three exclusive hues, and the sleek Predator Megaride lifestyle sneaker.

The collection launches with a campaign starring Brazilian football legend Kaká, World Cup champion and Ballon d’Or winner, shot in his home country.