Sosandar PLC (AIM: SOS), the online women's fashion brand, is pleased to announce the following trading update for the year ended 31 March 2019.
- The Company expects to report very strong revenue growth of 228% to £4.44m, comfortably in line with market expectations.
- Continued expansion of a loyal and engaged customer base:
- Repeat orders increased 389% to 55,828
- Number of orders increased 224% to 102,742
- New customers up 131% to 46,914.
- Conversion rate increased 76 bps to 2.92%
- Average order value increased 10% to £103.19
- Gross margin of 55%, up 558 bps year-on-year, reflecting continued strong demand for product and buying efficiencies.
- Increased efficiencies in marketing spend across all channels with significant CPA improvements.
- Returns of 50% reflect the anticipated improvement in the second half of the year from the 52% reported at interim results.
- A significant investment in stock of £260k was made at the end of Q4 to fulfil the peak demand going into Q1 of the new financial year.
Strong balance sheet with net cash of £3.64m as at 31 March 2019.
Sosandar has continued to trade strongly in Q4 with the emphasis on full price sales and the loss for the year is expected to be in line with market expectations. During this period, we focused on controlled acquisition spending which was 62% less than in Q3. Marketing funds have been strategically re-invested into the peak seasonal months of April-June to maximise the return on investment and sales, whilst also delivering bottom line efficiencies. Sosandar is in a strong position to continue its growth momentum going into the new financial year.
The Company has made substantial financial and operational progress during the year, driven by both a popular and growing product range and the continued success of its content and data driven marketing strategy.
The Group intends to publish its final results for the year ended 31 March 2019 in early July.
Ali Hall and Julie Lavington, Joint CEOs, commented:
"We are delighted to be reporting a year of substantial growth across all our key metrics including revenue, orders and new customers. This has been reflected in market expectations which have been upgraded twice during the year and we have now built a strong foundation on which Sosandar can continue to grow as a brand, providing our underserved market with quality, affordable clothing.
"Over the year, we have been focused on both growing our loyal customer base, underpinned by the continued delivery of high-quality clothing, and increasing the efficiency of our spend. Through increasingly sophisticated methods, we have managed to retain a high level of sell-through, alongside good ongoing full price sales, and significantly increased the efficiency of marketing costs.
"We are incredibly excited by Sosandar's long term prospects and look forward to the new financial year with confidence."