No recommendation
No news or research item is a personal recommendation to deal. Hargreaves Lansdown may not share ShareCast's (powered by Digital Look) views.
(Sharecast News) - Shares in Sosandar jumped on Tuesday, after the struggling online fashion retailer swung back into the black.
Updating on year-end trading, the AIM-listed firm confirmed revenues had risen 14% to 42.3m in the 12 months to March end, marginally higher than consensus for 43.1m, with own site revenues climbing 24%. Pre-tax profits were set to come in at 400,000, in line with expectations, following a loss of 100,000 a year previously.
Sosandar said its website had benefited from both increased traffic and improved conversion rates, alongside robust demand at third partner vendors such as Next.
Its bricks and mortar stores continued to weigh on profitability, although the estate saw a "positive uplift" in performance during the year. Sosandar first announced it was pivoting from being online only in 2023, but its stores have so far yet to turn a profit. The brand confirmed it currently did not expect to open any more shops "for the foreseeable future".
However, it added: "The board is confident in the company's strategy and believes the foundations are in place to deliver sustainable, profitable and cash-generative growth."
As at 1115 BST, shares in Sosandar had sparked 3% at 6.85p.
The value of investments can go down in value as well as up, so you could get back less than you invest. It is therefore important that you understand the risks and commitments. This website is not personal advice based on your circumstances. So you can make informed decisions for yourself we aim to provide you with the best information, best service and best prices. If you are unsure about the suitability of an investment please contact us for advice.