Sosandar Grows Q3 Revenue and Margins as Direct-to-Consumer Sales Accelerate

Sosandar (LSE:SOS) delivered a solid third-quarter performance for the period ended 31 December 2025, with revenue increasing 10% year on year to £13.4m. Growth was driven primarily by a sharp uplift in direct-to-consumer activity, with sales through the company’s own website rising 27%, reinforcing management’s view of the channel as the core of the brand.

Higher website traffic, improved conversion rates and stronger order volumes from both new and repeat customers supported margin expansion, with gross margin increasing to 66.0% from 64.7% a year earlier. The group also strengthened its balance sheet, reporting net cash of £9.7m at the quarter end, even after returning £0.8m to shareholders through share buybacks.

Sosandar said trading remains in line with full-year expectations, with the business targeting modest profitability alongside continued cash generation. While Marks & Spencer, a key retail partner, continues to operate with lower stock levels following a recent cyber incident, these are expected to normalise by spring 2026. Encouragingly, store sales are already ahead of last year, supporting management’s confidence that the foundations are in place for sustained and profitable growth.

From an outlook perspective, positive technical signals and supportive corporate developments underpin sentiment. However, profitability and cash flow remain areas for investors to monitor closely, particularly given valuation considerations.

More about Sosandar plc

Sosandar plc is a UK-based women’s fashion brand operating across both online and physical retail channels. The company designs and sells predominantly own-label, exclusive clothing across major womenswear categories, targeting style-conscious customers seeking quality and value. Sosandar sells through its own website and stores, complemented by partnerships with major retailers including Next and Marks & Spencer, and uses data-led product development and marketing to drive brand growth and expand both direct-to-consumer and third-party sales channels.