Womenswear etailer Sosandar has reported a 268% increase in gross profits to £2.44m for the year to 31 March, up from £0.6m the previous financial year.
Revenue also grew, rising 228% to £4.4m compared with £1.36m in 2017/18, achieved through strong repeat business with ”deliberately less emphasis on new customer acquisition as external factors resulted in a tougher acquisition environment”.
EBITDA loss was reduced to £3.49m in the period, down from a loss of £6m the year before. Meanwhile, gross margin improved to 55.5% from 49.4%.
The etailer recorded a period-end cash balance of £3.64m.
Sosander was launched by former Look magazine editor Ali Hall and ex-publishing director Julie Lavington in September 2016.
Hall and Lavington, co-CEOs, commented: “We are delighted to be reporting a year of exceptional growth along with significant operational progress. We have expanded our product range and invested in highly effective customer acquisition, which together are driving ever growing repeat rates. We continue to inspire and excite our customers and once we recruit customers they are proving to be incredibly loyal and highly engaged with the brand, which will fuel future growth for the business.
“We are continuing to invest in the expansion of our product range, most recently making investment into specialist areas of footwear, accessories, knitwear and denim. Our social channels continue to expand rapidly, and we have seen an ever-growing army of high-profile celebrities wearing our clothes such as Amanda Holden, Kelly Brook and Natalie Pinkham.
“Recent investment into specialist design areas and new factories will drive a larger product range going forward, further enhancing choice for existing customers to continue increasing their frequency of purchase and broadening the appeal even further for new customer acquisition.
“The new financial year has started strongly and in line with our expectations, with June setting a new record for the number of units sold in a month. Repeat orders for Q1 increased 122% year on year and Q1 has seen c.23% year on year revenue growth. This revenue growth has been achieved through strong repeat business with deliberately less emphasis on new customer acquisition as external factors resulted in a tougher acquisition environment. Being an agile e-commerce business, we have been able to respond quickly to external forces, making the prudent strategic decision to hold back funds to invest for customer acquisition in future months where we expect to achieve a better return on marketing spend.
“With a clear growth plan, we are confident in the outlook for the year and very excited about Sosandar’s long term prospects.”