Womenswear retailer Sosandar is continuing to move at pace from its original e-tail business model into one that includes physical stores.
Sosandar
On Monday, along with its festive season trading update, it announced two new store lease agreements.
But first, how did it fare in the recent ‘Golden Quarter’? It said the three months to the end of December actually saw revenue falling year on year as it “continued its transition away from price promotional activity”.
Revenue dropped to £12.12 million from £14.3 million a year earlier.
The company had previously been one of the fastest-growing fashion firms in the UK as far as revenue was concerned with massive increases as each quarter went by. But, as the company referenced, falling sales aren’t necessarily a bad thing if they come with increasing profit, and that was the case in this quarter.
The sales figure actually represented an increase of approximately 50% against each of the prior quarters (Q1 and Q2 of the FY25 period), “a significant step up in comparison to the prior year when Q3 FY24 revenues increased against each of Q1 and Q2 FY24 by 25% and 31%, respectively”.
And the gross margin of 64.7% increased significantly from 58.3% in the prior year “reflecting margin enhancement prioritisation”.
As well as the material improvement in gross margin year on year, it also rose versus H1 FY25 when it was 62.2%. The company said the uplift in margin is “now being delivered on a sustained basis and provides the foundation from which to drive sustainable and profitable cash-generative growth” over the long term towards its strategic objective of £10 million profit before tax (PBT).
It saw a “continued positive swing” in its trajectory as far as PBT was concerned as a result of the “continued prioritisation of margin enhancement and profitability ahead of revenue growth, in line with our strategic focus”.
And with net cash at the end of the year of £8.2 million, compared to £7 million in late November, the group can continue to self-fund its planned store rollout as well as other projects.
Regarding what sold, it saw strong sales of partywear, as could be expected given the time of year, as well as particularly strong sales in its core categories of knitwear and denim.
Trading with its well-established third-party partners “continued to be strong”, with Sosandar “being one of the top-selling brands across all third-party partners including NEXT and M&S”.
But as well as strength with its partners, its own four active stores “all performed well over the period, and we continue to see sales tracking in line with our expectations, with strong footfall and conversion and a demonstrable uplift in traffic to Sosandar.com in the geographical areas where the stores have opened”.
Overall trading remains in line with market expectations for the current financial year, “with January starting well and pleasing levels of full price sales, despite the well-publicised challenging macro-environment”. It believes that market expectations for the year ending 31 March 2025 are currently revenues of £40.5 million and PBT of £1 million.
And those new store agreements? It has signed two new lease agreements for its own stores, in Bath and Harrogate. Both locations are said to “meet Sosandar’s strict criteria of top tier, thriving locations, where Sosandar customers over-index”.
The picturesque city and town are in geographically very different parts of the UK but both have a shared history as fashionable spa destinations and continue to have plenty of appeal both for tourists and business events. They also share an affluent consumer base who, as the company pointed out, are likely to embrace what Sosandar has to offer.
In Bath, the store is located in SouthGate, the main shopping area in the heart of the city. It’s close to the thoroughfare of Bath Spa railway station with convenient underground parking. The store is in a prime position, adjacent to retailers such as Reiss and Oliver Bonas.
Meanwhile, Harrogate is one of the largest commercial centres in North Yorkshire and home to 76,800 people. The store is in a prime trading position on James Street, surrounded by other established retailers such as Oliver Bonas, White Company and Mint Velvet.
Zalando has announced Iamisigo, a Nigerian-founded brand, as winner of its Visionary Award 2025 “for its boundary-pushing exploration of artisanal craftsmanship and pioneering textile innovation”.
As well as the €50,000 prize, the label will present its collection on the runway at Copenhagen Fashion Week SS26 in August “with Zalando’s continued support through financial assistance for the show production, facilitating mentorship opportunities and tailored industry connections”.
The company said the award reflects its “commitment to supporting emerging designers who challenge conventions and inspire progress in the fashion industry”.
The brand blends heritage textiles with traditional craft techniques drawn from across Africa. It was founded by Bubu Ogisi and offers “contemporary designs with a bold, fresh perspective”.
At an exhibition at Copenhagen Fashion Week AW25 this week, the award finalists introduced their brands, presented their visions and ethos through a showcase of their hero pieces and a panel talk, hosted by Zalando.
We’re told the jury chose Iamisigo “for its dedication to blending ethical sourcing with a commitment to empowering local communities. The brand’s distinct voice, visionary and magical aesthetic challenge conventions, offering a new perspective on what it means to drive positive change in fashion; transcending gender norms, designing for spirits and energies”.
The jury also said that Bubu Ogisi “embodies the essence of a visionary in many ways, and that she is a rare creative talent working in this space today, with a brand whose output is both beautiful and miraculous”.
Deckers Outdoor on Thursday beat third-quarter sales estimates on robust holiday demand for its Hoka running shoes, but an in-line annual forecast caused the footwear maker’s shares to tumble 17% in extended trading.
Ugg
Hoka shoes with their oversized soles have been gaining market share from brands such as Nike in the sportswear category. The brand, which retails for up to $300 in the United States, have also enjoyed full-price sales.
This drove up the company’s third-quarter revenue by 17% to $1.83 billion, beating analysts’ average estimate of $1.73 billion, according to data compiled by LSEG. Deckers also raised its annual net sales forecast for a second time this year.
“The guidance looks pretty conservative and considering the beat, it’s bit of a negative read into the out quarter,” said Drake MacFarlane, analyst at MScience.
The popularity of the Hoka shoes and the success of the company’s Ugg boots and sandals has helped it post double-digit revenue growth for nearly seven quarters.
The company now expects annual net sales to increase about 15% to $4.9 billion, compared with its prior expectation of about 12% growth to $4.8 billion. Analysts estimated an increase of 14.9% to $4.93 billion.
Deckers expects annual earnings per share of $5.75 to $5.80, compared with its prior forecast of $5.15 to $5.25.
Amazon.com is increasing its advertising on billionaire Elon Musk’s social media platform X, the Wall Street Journal reported on Thursday, citing people familiar with the matter.
Reuters
The major shift comes after the e-commerce giant withdrew much of its advertising from the platform more than a year ago due to concerns over hate speech.
In 2023, Apple also pulled all of its advertising from X and has recently been in discussions about testing ads on the platform, the report said.
Several ad agencies, tech and media companies had also suspended advertising on X following Musk’s endorsement of an antisemitic post that falsely accused members of the Jewish community of inciting hatred against white people.
Monthly U.S. ad revenue at social media platform X has declined by at least 55% year-over-year each month since Musk bought the company, formerly known as Twitter, in October 2022. He had acknowledged that an extended boycott by advertisers could bankrupt X.
Musk has become one of the most influential figures following President Donald Trump‘s re-election. He now leads the Department of Government Efficiency, which aims to cut $2 trillion in government spending.
Entertainment8 years ago