Sosandar Reports Profitable Growth as Multi-Channel Expansion Continues to Deliver (SOS)

Sosandar (LSE:SOS) delivered a strong performance for FY26, reporting revenue growth of 14% year-on-year to £42.3 million as its focus on full-price sales and higher-quality margins continued to drive profitability. Gross margin improved to 64.0%, while adjusted profit before tax doubled to £0.4 million, in line with market expectations. Excluding losses associated with its developing store portfolio, underlying profit reached £1.3 million.

The company’s direct-to-consumer website remained a key growth driver, with revenue increasing 24% thanks to higher customer traffic, stronger conversion rates and increased order volumes. Sosandar also maintained its position as a leading brand with major retail partners, including NEXT, while trading with Marks & Spencer returned to more normal levels following disruption caused by a cyber incident.

The retailer ended the financial year with net cash of £8.4 million after completing £1.8 million of share buybacks, providing a solid financial foundation for future expansion. Trading has also started strongly in FY27, with first-quarter revenue rising 22% to £11.6 million alongside further improvements in gross margin. Management said the business continues to benefit from increasing operating leverage as its multi-channel strategy and growing store estate mature.

Although Sosandar’s operational performance continues to improve, the company’s outlook remains balanced by ongoing profitability and cash flow challenges. Positive technical indicators, strategic execution and management’s confidence in the long-term growth opportunity provide encouraging signs, but investors are likely to remain focused on the business’s ability to deliver sustained earnings growth as it expands.

About Sosandar plc

Sosandar plc is a UK-based women’s fashion retailer offering predominantly own-brand clothing designed for style-conscious consumers. The company sells through its own e-commerce platform, a growing network of physical stores and major retail partners including NEXT, Marks & Spencer and John Lewis.

Founded in 2016 and listed on AIM in 2017, Sosandar targets the mid-market women’s fashion segment with a strategy centred on expanding brand awareness through a multi-channel retail model, supported by data-led merchandising and digital marketing.