Despite return to profitability: Sosandar misses annual forecasts

British clothing provider Sosandar Plc experienced significant sales losses in financial year 2024/25, but was able to return to pre-tax profit. This is according to preliminary key figures published by the company on Wednesday. However, the results fell short of previous expectations, causing the share price to plummet by almost 15 percent immediately.

Based on the figures available, management expects sales of 37.2 million pounds for the financial year ended in March. This represented a decline of almost 20 percent compared to the previous year. The company attributed the losses to the targeted restriction of discount campaigns. Due to unexpectedly weak demand in February, however, annual sales were below the previous target of 38.5 million pounds.

Management sees ‘strong strategic progress’

As part of the ongoing strategy, which is primarily aimed at increasing profitability, the clothing provider was able to increase its gross margin from 57.6 percent to 62.5 percent and return to profitability. In view of the results available, management now expects earnings before tax (EBT) of at least 0.5 million pounds, after a pre-tax loss of 0.3 million pounds had to be recognised in the previous year. Previously, however, the company had forecast EBT of one million pounds.

Although the results apparently fell short of expectations, the management emphasised the “strong strategic progress” made over the past year and referred to the improvement in margin and earnings, the reduction in discounts and the opening of the first six own-brand stores. The company stated that the strategy is now proving successful, especially since sales have recently experienced an upward trend again.