Shares fail to ignite despite sales spark at Sosandar

(Sharecast News) - Shares in Sosandar came under pressure on Tuesday, despite a surge in quarterly sales, after a festive update from the womenswear brand failed to cheer investors. Updating on the three months to 31 December, the Aim-listed retailer said revenues jumped 10% to £13.4m, while the gross margin improved to 66% from 64.7% a year previously.

The firm said the performance had been driven by higher site traffic to its website, alongside improved conversion rates and increased order volumes from both new and existing customers.

It also confirmed it remained on track to meet full-year expectations.

However, it did not provide a detailed update on bricks and mortar trading during the third quarter, other than to confirm sales through stores had been "encouraging", and ahead of the prior year.

Formerly online-only, Sosandar is establishing a physical footprint through partnerships with retailers including Marks and Spencer Group, Next and John Lewis Partnership, and by opening its own shops.

It currently has six standalone branded retail stores.

The company was hit hard by the M&S cyberattack in spring 2025, and did not receive any material revenue from the chain for five of the first six months of the year.

On Tuesday Sosandar noted that M&S stock levels were not expected to normalise until spring.

As at 1030 GMT, the stock had shed nearly 8% at 7.40p, having earlier touched 7p.

In a statement, joint chief executives Ali Hall and Julie Lavington said: "We're pleased to see the positive momentum has continued into the second half, with continue revenue growth and improved margins.

"The foundations have been laid for sustained profitable and cash-generative growth."

Consensus is for full-year pre-tax profits of £400,000 on revenues of £43.6m.