The company achieved a significant improvement in gross margin, which rose by 670 basis points to 63.4 per cent, compared to 56.7 per cent in Q1 FY24. This improvement is attributed to an 80 per cent reduction in price promotional activity on the company’s website compared to the same quarter last year, the company said in a press release.

In terms of profitability, Sosandar saw a substantial positive shift, reducing its pre-tax loss from £0.8 million in Q1 FY24 to £0.2 million in Q1 FY25.

"The transition to becoming a true multi-channel retailer, with our products being sold on our own site, our mobile app, through our own stores and via highly reputable third-party partners, is well underway. To meet our strategic goal of delivering a pre-tax profit margin of at least 10 per cent in the medium term and £100 million-plus revenues, we have refined our focus and built a roadmap that will shape our decision making over the coming years. The core ingredients to this include prioritising margin and sustainable profitable growth rather than revenue growth through promotional activity,” said Ali Hall and Julie Lavington, co-CEOs.

Fibre2Fashion News Desk (DP)