Sosandar H1 losses improve despite revenue drop

22nd Oct 2024 09:58

(Sharecast News) - Clothing retailer Sosandar said on Tuesday that losses had improved in the six months ended 30 September, despite a fall in H1 revenues.

Sosandar said interim revenues had fallen from £22.2m to £16.2m as it continues to transition away from price promotional activity outside its major scheduled sale events.

However, gross margins expanded to 62.2% from 55.4%, reflecting margin enhancement prioritisation, and pre-tax losses narrowed to £700,000 from £1.3m.

The AIM-listed group also noted it had successfully opened its first three own stores, with strong trading seen in all three, and said October trading had started "strongly" across all channels.

Sosandar added that its FY25 revenue expectations had been moderated to £40.0m but stated pre-tax profit expectations were unchanged, given continuing margin strength and careful management of other overheads.

As of 0955 BST, Sosandar shares were down 4.74% at 10.24p.

Reporting by Iain Gilbert at Sharecast.com