Sosandar plc (LSE:SOS) reported an 11% increase in revenue to £20.8 million for the six months ended 30 September 2026, compared with £18.7 million a year earlier, supported by growth across its third-party retail partnerships and improved gross margins.
The women’s fashion retailer narrowed its adjusted pretax loss to £0.7 million from £1.1 million in the corresponding period last year and confirmed that trading remains in line with full-year FY2027 market expectations.
Gross Margin Improves as Adjusted Loss Narrows
Sosandar’s gross margin increased to 65.1% during the first half, compared with 62.2% a year earlier, representing an improvement of 2.9 percentage points.
The company attributed its improved profitability trajectory to revenue growth and stronger margins, with earnings traditionally weighted towards the second half of the financial year.
Cash balances stood at £7.1 million at 30 September 2026, compared with £8.4 million at the end of March.
The reduction reflected the expected first-half working capital cycle and £0.9 million returned to shareholders through share repurchases during the period.
Third-Party Revenue Increases 24%
Sosandar reported a 24% increase in revenue from third-party retail partners during the first half, supported by its relationships with retailers including Marks & Spencer, NEXT and John Lewis.
The company noted that some of the growth was associated with Marks & Spencer following its cybersecurity incident, although other retail partners also delivered year-on-year improvements.
Revenue from Sosandar’s own website remained unchanged compared with the previous year. Excluding September, website sales increased 5%.
The company’s physical store estate continued to develop, with revenue increasing 10% year-on-year excluding the Bath store, which was assigned during the period.
Management said its priority remains improving profitability across the existing store portfolio.
September Weather Delays Autumn Fashion Sales
Sosandar reported strong trading during the spring and summer months, with revenue for the first five months of FY2027 increasing 17% year-on-year.
During that period, revenue from its own channels increased 6%, while third-party revenue advanced 32%.
However, prolonged summer weather during September delayed demand for autumn clothing across the company’s sales channels, reducing the growth rate for the half-year period.
The company said consumer conditions remained challenging, although its multi-channel sales strategy continued to support revenue growth.
October Trading Strengthens as Gross Margin Reaches 68%
Sosandar reported a significant improvement in trading during October as cooler autumn weather supported seasonal product demand.
Gross margin for October reached 68.0%, compared with 67.2% in the corresponding month last year.
The company’s cash balance stood at £6.4 million at the end of October, reflecting the timing of inventory payments.
Management confirmed that trading remained consistent with market expectations for the full FY2027 financial year.
Management Maintains Full-Year Expectations
Co-chief executives Ali Hall and Julie Lavington said the first-half performance reflected progress in the company’s strategy to expand its sales channels while improving margins.
They noted that the business had maintained growth through the spring and summer season despite subdued consumer conditions, with trading recovering during October following September’s weather-related disruption.
Sosandar continues to focus on its direct-to-consumer website, retail stores and third-party partnerships to expand customer reach and support longer-term growth.
The company reiterated its confidence in achieving full-year market expectations.
More About Sosandar
Sosandar plc (LSE:SOS) is a UK women’s fashion retailer offering clothing, footwear and accessories through its own website, physical stores and third-party retail partnerships. Its products are predominantly designed in-house and sold under the Sosandar brand, with distribution relationships including NEXT, Marks & Spencer and John Lewis.
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