Revenue at Sosandar shot up by 387% for the year to 31 March 2018 to £1.4m, as the womenswear etailer increased product categories, invested in marketing and improved its use of data.
Like-for-like sales were up 268% for the six months to March 2018 year on year and average order values increased by 8% to £94.18.
However, losses for the full year grew to £6m, from £1.8m the previous year. Sosandar head of finance James Bowling said this was “to be expected” as the business continued to invest in future growth.
Sosandar co-CEO Ali Hall told Drapers: “The revenue growth and sales increase has been down to a combination of broadening our product range, offering customers more choice as well as buying deeper within our existing ranges. We’ve also been focusing on increasing repeat rates and investing in marketing, on and offline.
“It has been about getting customers to the website but also making sure we’re producing really well-designed products to ensure they want to spend when they get to the site.”
“The kind of investment we’re making is going to impact on losses in the short term,” Bowling added. “There’s been planned investment in growth while we’re in the customer-acquisition phase, such as in people and in marketing channels. Margins, average order values and conversion rates, all key KPIs, have improved.”
In November, Sosandar raised £5.3m when it floated on the London Stock Exchange’s junior Aim market. New ordinary shares were placed at 15.1p per share, valuing the company at around £16.1m.
Sosandar was founded by former Look magazine editors Hall and Julie Lavington in November 2015 and launched its first website the following September. It aims to offer affordable fashion to shoppers looking for an alternative between young fashion retailers and the “mumsy middle ground”.