Sosandar Share Discussion Threads

[thetrotsky] 01/12/2020 10:33

Croasdalefc - I would take issue with your comments about other online sellers. ASOS, Quiz and Superdry's comparatives have hardly been setting the world alight. Boohoo still has some reasonable traction but has been acquiring additional brands in the last 12-18 months (so a direct YoY comparison is more difficult). In an ideal world SOS would have been investing in increasing its customer base and/or diversification to offset the impact the pandemic has been having on average customer spend, product mix, quatities etc. but both of these options require cash and entail risk. Also, it's difficult to diversify in a pandemic, especially if it requires forging new commercial relationships. IMHO I think SOS have done well to increase sales and maintain cash in very trying times. My one criticism of today's results would be their forward looking statements about October/November; it would appear that their sales are at, or perhaps slightly ahead of, the same level as last year (they slightly muddied the statements and it's difficult to discern). Is this a disaster, far from it but it does rather confirm your comments that there's only so many party dresses that you can sell in a pandemic. Also, we should not discount the impact the government's actions are having on Xmas preparations. I'm sure there are more than a feww women out there wondering whether they'll be wearing a party frock or PJs on Xmas Day and, as for New Year's Eve, it looks as it we'll all be watching a socially distanced Jools Holland Hogmanay this year! The demise of Top Shop and Debenhams would appear to provide opportunity in the New Year and, if there is an opportunity to start or buy a complimentary brand (e.g. mens clothing) and/or expand the customer base in a cost effective manner then I think there would be supoort for a further cash call

[swanvesta] 01/12/2020 09:38

I suspect they have had a load of old stock to shift, going by inventory numbers. Suggests poor stock management at the time, though everyone will have overestimated demand prior to covid. The fact they haven't written it down but managed to flog it at decent margins is a positive. [Edit: Well, maybe a good bit still to go going by the comment re Spring/Summer sales.]

[danieldruff2] 01/12/2020 09:22

Disappointing to see the price drop but it was inevitable. You could see there was speculative results buying over the last few weeks sending it from 16 to 20p. A few thought that was enough and sold out on Friday and Monday, many of the rest today. I guess this game will continue here for another 12-18 months but in the longer term this looks like a winner.

[jackson83] 01/12/2020 09:09

heading below 18p now .. over 10% down on poor results/profits warning

[thetrotsky] 01/12/2020 09:09

Jackson83 - As always, love your detailed inciteful comments - NOT! Whats is it with you and Paull Scott? Bro love in? Pathetic, as usual.

[croasdalelfc] 01/12/2020 09:02

Of course hence the poor growth. have SOS heard of diversification- even for just one season? Their range is the same as last year - even some of the stock. My missus gets the catalogue and has been a buyer. She agrees that some items are the same as winter 2019 - and too much emphasis on party clothes.

[jackson83] 01/12/2020 08:59

this will be 10p soon ... shocking red flag results and even Paul pilot sold out

[anderson sw] 01/12/2020 08:59

The share price is fair for now I agree but silly comments about poor revenue growth are not.

You’re aware that for a very large part of this year people haven’t been needing to dress up for work, haven’t been allowed to go on holiday, haven’t been able to go to bars and restaurants or attend parties, right?

[croasdalelfc] 01/12/2020 08:33

I'm sorry but growth is poor for this nascent company with director remuneration of £500k a year. Also a big chunk of pf of clothes is party dresses , coats , and party accessories- which will struggle to sell this year. It has enough cash to avoid a cash call but when other online retailers are going from strength to strength I just see this as loss making for another year , and chugging along in 3rd gear. The share price is fair and will probably drift

[slaccs] 01/12/2020 08:32

A lot of sad people on this thread crying 'Wolf'

[onjohn] 01/12/2020 08:32

Sos
Worth no more than 5p

[che7win] 01/12/2020 08:07

Arcadia and Debenhams troubles will accelerate growth for SOS going forwards.Positive update.

[someuwin] 01/12/2020 08:06

Looks like good progress to me.

[montynj] 01/12/2020 07:35

Not 10x sales...you have to annualise the sales and then they are trading on 3.7x sales which is too cheap

[bg23] 01/12/2020 07:24

very impressive given the backdrop. definitely going in the right direction.

[ditchsid] 30/11/2020 18:24

John Lewis & Next but no mention of Arcadia brands

[nesquikme] 30/11/2020 16:31

Have they supplied arcadia

might be bad debts coming

[danieldruff2] 28/11/2020 20:33

Also significant that Schroders are now on the share register. They'll probably want to add to their 5% holding.

[apad] 28/11/2020 20:18

I think that the previous TV big spend has not been repeated. Indeed could not be!
Recently, they have had some carefully placed TV adverts on, for example Bake Off.
Good sign that they can fund these.
Intensive email marketing (still the most cost effective) with a very impressive range of changing styles and themes.
Tuesday is all about revenue growth, profitability is unlikely.
Also, the Interim financial numbers won't be much of a surprise.
What's important is what they say about October and November.
That will establish the trajectory into Xmas and you can bet your boots they will crow if they have anything to crow about.
I will guess that they can do Xmas without a fund raise and should be able to raise money in the new year at a premium.
I shall be glued to the screen on Tuesday at 07:00
GLA
apad

[mauricemonkey] 28/11/2020 18:50

We'll see. I have high hopes the new ex Regatta finance whizz will inject some sense and get this going in the right direction

[zingerburger] 28/11/2020 16:37

photon - they have to hand over paye and vat to the government which is why cash was that. once that is paid in january its looking less rosey.

Throw enough money at advertising and promotion and sales are bound to grow.

Profitable growth on the other hand is much harder to achieve, as sos demonstrates.

the growth is also coming frpm thord party soites rather than their own. so margins are falling

Will ask for more money soon i fear.

[someuwin] 27/11/2020 14:12

Results on Tuesday.