Sosandar (SOS) H1 2025 earnings summary

Executive summary

• Opened four new UK physical stores, marking a transition to a multi-channel model and driving strong in-store and online sales, with 65% of store customers new to the brand.

• Strategic focus on improving gross margin and profitability by reducing price promotions and selective marketing.

• Store rollout is self-funded, supported by a robust cash position.

• Signed first licensing agreement with Next for a 50-piece homeware range launching September/Autumn 2025, expanding into adjacent categories.

• Strong trading with third-party partners, including NEXT, Marks & Spencer, and Arnotts in Dublin.

Financial highlights

• H1 FY25 revenue was £16.2m, down 27% year-over-year from £22.2m, reflecting reduced promotional activity.

• Gross margin increased by 700bps to 62.2% in H1 FY25, up from 55.4% in H1 FY24.

• Loss before tax halved to £0.7m from £1.3m in H1 FY24.

• Operating costs, including depreciation, reduced by 21% to £10.7m.

• Cash balance at period end was £7.0m, funding store rollout and ongoing investments.

Outlook and guidance

• On track to meet full-year FY25 expectations, with gross margin at 64% in Q3 to date.

• Trading in H2 FY25 to date is in line with full-year market expectations of £40.5m revenue and £1.0m PBT.

• Medium-term goal to achieve at least 10% PBT on £100m revenue.

• Store rollout pipeline targets up to 10 new stores per year, subject to suitable locations.

• Further store openings and international expansion planned, leveraging multi-channel model.