Womenswear etailer Sosandar has reported a 53% revenue increase, to £2.82m, for the six months to 30 September 2019.
Gross profit also increased from £1.01m to £1.5m over the period. Gross margins dipped to 54%, down from 55% in the same period last year.
But the business has reported that its EBITDA loss grew from £1.96m to £2.7m, “reflecting the increased upfront investment into the team, product and marketing”.
Sosandar’s customer base grew by 76% year on year, and active customers increased by 70%.
The retalier had a cash balance of £6.9m at the end of the period.
Emily Salter, retail analyst at Global Data commented: ”An important contributor to the jump in revenue in September was Sosandar’s first foray into television advertising, as it tested different regions, channels and programmes and reinvested in the best-performing ones. The retailer also invested in digital panels in major London train and underground stations – a location usually dominated by advertising for young fast fashion brands. Both of these marketing channels will boost brand awareness and customer acquisition. This also reduces its reliance on showcasing the celebrities seen wearing Sosandar products as a marketing method – though this could be incorporated into digital panel adverts, as it gives credibility to the brand. These new streams of marketing led to a record number of email subscriptions, with 224% more subscriptions in September versus August, helping it to build its shopper base.
”October was the first month in which net sales surpassed £1m, and sales growth in November is on track to exceed 100%. This is a sign of the growth potential of Sosandar, as its trend-led products resonate with its target audience far more effectively than the likes of Debenhams and Marks & Spencer which continue to struggle to attract and retain this consumer segment.”