Sosander shares rise as revenue surges 52%

Joint CEO's of Sosander: Ali Hall and Julie Lavington.

Sosander shares (LON: SOS) rose almost 6% on Wednesday’s opening as the group released a positive half-year trading update.

In the six-months ending 30 September 2020, the fashion retailer posted a 52% increase in revenue and sales momentum also gained strength.

“The revenue growth in the half represents a strong performance in a challenging trading environment, highlighting the Company’s in-depth knowledge of its customer base and its agility in quickly adapting to changes in the market,” said the company in a statement.

During the lockdown period, Sosander limited marketing spend and focused on cash cash preservation and trading its database of repeat orders and prospects. Repeat orders grew by 88% compared to the same period a year earlier.

The company also saw a 26% increase in new customers, despite reducing marketing spending.

The group has also begun trading on the Next and John Lewis websites. Initial sales have been positive and ranges have expanded since August.

Ali Hall and Julie Lavington, Co-CEOs commented: “We are delighted to have continued to demonstrate the strength of the Sosandar brand and agility of our model, growing our sales, product range and customer base during such a challenging trading environment.

“Our customer database, and their loyalty, is the backbone of our performance. The feedback from our customers throughout lockdown has been fantastic and it is clear that they love wearing Sosandar clothes, whatever the circumstances. Following the successful re-introduction of TV advertising and brochure activity in September, we will continue cautiously investing in marketing to underpin customer database growth throughout October and November.

“Notwithstanding the continued uncertainty, we continue to believe that we can take significant market share within our demographic, particularly as the lockdown period escalated growth in online retail. We remain confident in what the future holds for Sosandar,” they added.

Sosander shares (LON: SOS) are currently trading 4.33% higher at 15,65 (1142GMT).

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Safiya focuses on business and political stories for UK Investor Magazine. Her interests include international development, travel and politics.