Sosandar Plc (LON: SOS) are expected to publish their interim results in the next few weeks, seniority are confident for strong revenue figures causing shares to climb.
In the early hours of Monday trading, Sosandar released a statement which stated that sales orders had increased and that this would return strong revenue growth.
For the six months leading up to September, revenue is expected to rise by 53% to £2.8 million.
This would be a significant increase from the previous figure of £1.8 million in the period a year prior.
The numbers of orders rose by 47% year on year from 43,979 to 64,709. While Sosandar’s customer database grew by 76% to 148,884 from 84,500 the prior year.
“Our ability as an online retailer to employ an agile strategy resulted in us focusing our customer acquisition activity on the important Autumn months towards the end of the period and carrying into current trading. As expected, the accelerated investment into marketing and product is producing strong results with record months in September and October,” said Ali Hall and Julie Lavington, joint chief executive officers.
Hall and Lavington added “”We are delighted with the success of our new advertising activity and the board is confident that accelerating our future growth by increased investment in marketing (especially via TV) in this financial year is the right decision for our business,”
Sosandar noted that sales across all sectors had grown even though average order value had decreased due to average unit price falling.
Sosandar have also increased their product offering and in the first half of 2020 plan to bring out some more lines of women’s clothing.
Additionally, with these extra product lines there has been a pledge to increase television advertising, which will drive up marketing costs.
Speculating further, Sosandar expects the average order value to increase on expectations of the cold weather to raise the sales of higher price points items such as outwear.
In the fashion sector, there have been updates. Laura Ashely’s (LON: ALY) Finance Chief has stepped down, Superdry (LON:SDRY) have appointed a new CEO and Boohoo Group (LON:BOO) have seen profits soar.
Currently, shares of Sosandar Plc are trading at 20p per share, seeing a 25% rise. 28/10/19 10:32BST.