Sosandar swings back into the black, shares spark

(Sharecast News) - Shares in Sosandar jumped on Tuesday, after the struggling online fashion retailer swung back into the black. Updating on year-end trading, the AIM-listed firm confirmed revenues had risen 14% to £42.3m in the 12 months to March end, marginally higher than consensus for £43.1m, with own site revenues climbing 24%. Pre-tax profits were set to come in at £400,000, in line with expectations, following a loss of £100,000 a year previously.

Sosandar said its website had benefited from both increased traffic and improved conversion rates, alongside robust demand at third partner vendors such as Next.

Its bricks and mortar stores continued to weigh on profitability, although the estate saw a "positive uplift" in performance during the year. Sosandar first announced it was pivoting from being online only in 2023, but its stores have so far yet to turn a profit. The brand confirmed it currently did not expect to open any more shops "for the foreseeable future".

However, it added: "The board is confident in the company's strategy and believes the foundations are in place to deliver sustainable, profitable and cash-generative growth."

As at 1115 BST, shares in Sosandar had sparked 3% at 6.85p.