Sosandar witnesses record quarterly revenues and orders

Sosandar revealed that revenues came in "slightly ahead" of its expectations at £1.6m,for a 219% increase year-on-year and higher than its revenue for the entire prior financial year.

The AIM-listed firm's customer database increased 209% to nearly 100,000 and its total number of orders increased 221% to 35,183. Average order value increased 10% to £105.58 and repeat orders increased 527% to over 20,000.

Elsewhere, Sosandar's conversion rate increased 129bps to 3.47% and its gross margin moved ahead 500bps to 53.3% for the quarter thanks to its ability to hold full price during the Black Friday trading period.

Chief executives Ali Hall and Julie Lavington said: "We are pleased to be reporting another period of substantial growth over the key trading months to 31 December driven by strong full price sales and high sell through rates, combined with a successful seasonal sale at the end of period."

The joint CEOs also said they felt the firm's recent performance highlighted "the underlying quality" of its products and the "sizeable growth opportunities" within the Sosandar brand.

Broker Liberum said Sosandar was "clearly a fast-growing (albeit immature) business" as it highlighted the favourable nature of the strong brand and its distinct market position - something it said noted was "a common thread" amongst its top picks.

Liberum analyst Tom Musson said: "Further, a strong brand also underpins greater pricing power, which provides an important underpin for gross margin resilience, and we have seen that today in Sosandar’s 500bps increase in gross margins y/y."

As of 0945 GMT, Sosandar shares had picked up 1.66% to 32.53p.