Sosandar breaks more records, has first EBITDA-positive quarter
Womenswear e-tailer Sosandar has turned in yet another record-breaking set of figures with the company saying on Thursday that Q3 — the three months to the end of December — saw revenue up 122% year-on-year. And it was its first EBITDA-positive quarter too, while trading is in line with recently upgraded market expectations.
Admittedly such revenue leaps are easier when starting from a small base and it remains a relatively small business with revenue reaching just £8.85 million during the quarter.
But its growth trajectory looks like propelling it much higher for the foreseeable future as its customer engagement continues to be “very strong”.
It actually managed to boost active customer numbers by 62% in Q3 and its conversion rate rose to 4.06% from 3.47%. The average order frequency also increased by 12% to 2.23 times a year and the average order value of £95.18 was up 13% from £84.51 in the prior year. Meanwhile, the gross margin rose to 55.8% from 43.6% a year ago.
Its exposure at some of the most prominent names in UK retail seems to be helping too as it said it saw record trading with third-parties M&S, Next and John Lewis, “following significant investment in stock depth and breadth”.
The company said it all reflects its “agility, unique product offering, high levels of customer engagement and ever increasing brand awareness, which continues to build demand and drive momentum with fashion-forward women”.
Its “significantly expanded” autumn/winter range “resonated extremely well with customers, with rapid sell-through across all key categories on Sosandar's own website and with third-parties”.
All product categories grew year-on-year and, importantly, overall returns rates are lower than pre-pandemic levels due to the diversification of the product range.
It also said that trading post-Christmas and into early January, has been strong. Demand has “followed trends of expected seasonality”. Sales of partywear were healthy pre-Christmas followed by an increase in activewear and more casual pieces post-Christmas, along with “sustained strong sales” of knitwear, outerwear, dresses, boots, denim and leather.
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