Sosandar's omni-channel strategy drives revenue growth and profitability

UK-based women's fashion brand Sosandar has announced its financial results for the year ended March 31, 2026, reporting a 14 percent revenue growth year-over-year, to 42.30 million pounds (56.50 million dollars) compared to 37.10 million pounds in the previous financial year.

The gross margin increased to 64 percent, reflecting a sustained focus on margin improvement. Adjusted profit before tax increased to 0.40 million pounds, up from 0.20 million pounds, aligning with market expectations.

The underlying business delivered an adjusted profit before tax of 1.30 million pounds when excluding the impact of its own stores. The company's brick and mortar retail estate continues to weigh on overall profitability, posting a 0.90 million pounds loss as locations progress toward maturity.

Strategic omni-channel development and third-party partnerships

Sosandar maintained a strong net cash position of 8.40 million pounds at the end of the period, rising from 7.70 million pounds as of September 30, 2025. This cash position was achieved after returning 1.80 million pounds to shareholders through share buybacks during the period.

The company's own website registered a 24 percent revenue increase YoY, driven by higher platform traffic, improved conversion rates, and increased order volumes from new and existing customers. A key catalyst for this return to growth was an increased marketing investment that delivered a strong return on investment.

Trading with third-party digital partners remained robust throughout the period. Sosandar secured its position as one of the top-selling brands across partner platforms, including Next. Wholesale operations with Marks & Spencer (M&S), gradually resumed following a cyber incident, allowing stock intake levels to return to expected volumes.

Positive first quarter trading momentum

The brand also provided an update on its first quarter trading performance for the period ending June 30, 2026. Net revenue for Q1 increased by 22 percent to 11.60 million pounds compared to 9.50 million pounds in the first quarter of the previous financial year, a prior period that had been heavily impacted by the M&S cyber disruption.

Revenue from the brand's own website increased by 7 percent during Q1. The gross margin showed continued improvement, rising to 65.20 percent during the quarter.

The corporate net cash position grew to 8.90 million pounds by June 30, 2026, after the business returned an additional 0.50 million pounds to shareholders via share buybacks. The store estate witnessed a 10 percent increase in trading compared to the previous year, though the company has assigned the lease of its loss-making Bath store to another retailer to mitigate retail losses.

Sosandar co-chief executive officers, Ali Hall and Julie Lavington, stated: “We set out at the start of the year to demonstrate that we could return to strong revenue growth while maintaining margins and improving profitability, and we have delivered on all three.”

The co-CEOs added that the distinctive aesthetic continues to perform well across all categories, particularly in separates such as trousers, jackets, jeans, and tops. Hall and Lavington concluded that the momentum taken into the new financial year leaves the business on track to meet full-year market expectations.