Middle-aged women hunting casual clothing to wear at home in lockdown has helped online fashion retailer Sosandar emerge as a Covid winner.
The Aim-listed firm, set up in 2015 by friends Julie Lavington and Ali Hall who both worked at fashion magazines, said sales had surged 62% since the start of April, with loungewear revenues up and returns lower as customers bought less tightly-fitted clothes.
Unlike larger peers Boohoo and Asos, investors had not pick Sosandar as a winner from the switch to online retail and shares had struggled. Today they bounced 43% or 4p to 12.5p. Sosandar has also agreed to sell through John Lewis and Next’s sites this autumn.
However, the retailer warned that it still expects to post a higher-than-forecast loss in the year to March 18 with margins under pressure due to discounting.
Independent analyst Nick Bubb said: “Investors will not be happy to hear that the loss for y/e March is expected to be slightly higher than expected, because of gross margin pressure, but they should be reassured by the 62% sales growth achieved over the last two months and by the news that the company has the cash resources to withstand the current crisis.”
Separately today supermarket Morrisons launched a separate website for its Nutmeg clothing range. The label, launched in 2013 originally as a kidswear brand, will tap into the surge in online clothing shopping during lockdown.
Non-food sales, including clothing, account for a much smaller proportion of sales for Morrisons than its rivals including Asda with its powerhouse George brand and Tesco’s own label F&F.
Christine Bryce, Nutmeg clothing director at Morrison, said: “With customers looking to shop online, we will be able to serve more people in more parts of the UK, including those who are self-isolating. We will be offering them access to current trends, seasonal staples and best in class products.”
