Sosandar Share Discussion Threads

[thelongandtheshortandthetall] 12/1/2023 10:59

The SOS story is just taking hold IMO.
It's the fact that the clothes and marketing imagery resonate with older women.
These ladys represent a massive section of the fashion market spend and they have historically been neglected and undeserved.
If SOS carry on as they are then compound growth will make them a pretty big hitter.

Management have proved themselves worthy over the last few years too.

[simso] 12/1/2023 10:48

Excellent post, Aleman. I did feel a slight initial disappointment of "only +30%" when I first read the RNS on Tuesday, but a proper reflection is:-

1) +30% for Q3 is still a run rate which is ahead of what consensus requires for the full second half (+25%).

2) Other competitors performance over the same period: ASOS UK -8% over the last 4 months. N Brown's "Heritage Brands" which includes JD Williams -18% over the last 6 months, even Next last week quoted online LFL for the last 2 months of 0%. The +30% for SOS over the last quarter certainly looks all the more impressive in the context of others'performance.

3) The Royal Mail strike is a (hopefully) temporary factor, outside of SOS control, and where the impact was likely to be most acute and cause the most extensive delays in the month of December, due to the overall volumes of cards/parcels/letters. It is likely to have suppressed performance, and the true underlying rate therefore better than the +30% reported, which will hopefully resume, especially as other couriers (Hermes etc) will soon be integrated onto SOS site as an option rather than just Royal Mail. It is interesting to see others point the finger of blame for a weaker December on the Royal Mail....including ASOS this morning
"... particularly significant in September, which was impacted by national newsflow, and December, which was affected by disruption in the delivery market".

[aleman] 12/1/2023 09:54

It sounds like ASC suffered significantly with pre-Christmas postal strikes as consumers went back into bricks and mortar outlets more. (Why order online if you are not sure it will come in time?) That, and much lower Covid this winter, possibly accounts for SOS's slower growth in December after a bumper October and November. I'd presume the SOS trend will recover some from December if and when postal strikes cease and /or they get the planned alternative delivery agents under way. (It might well recover a little anyway simply because orders after Christmas are less likely to be deadline driven and the Covid year-on-year boost for bricks and mortar will fade quickly.) In short, I would not worry too much about Q3 being "only +30%" because we've been held back a bit by Covid and a lot by the disruption that has caused significant problems for other companies. ASC's update makes me a litte more confident that things are still on a very promising track here even though they are aimed at different market segments.

[w13ken] 12/1/2023 09:32

Interesting to note Aleman. It helps that we have really experienced joint CEOs in Julie and Ali that are really hands-on on the day-to-day strategy and decision-making. They worked on publishing a weekly fashion magazine so know all about fashion, what customers want and acting dynamically.

I think it means Sosandar are far more agile than larger competitors and can analyse what to promote and what to pull far more quickly and should result in a better bottom line.

[aleman] 12/1/2023 08:18

There's not much overlap but I think it's useful to know that ASOS UK sales went from +7% last financial year to -8% in the last 4 months. It gives an idea of the severity of their deterioration. The inference is nothing particular except that SOS might be doing slightly better RELATIVELY than the numbers initially suggest?

[davwal] 10/1/2023 18:20

I have wondered whether Next might snap SOS up. Regarding territories, maybe the Irish Republic is one country from where interest has been received. If they are getting unsolicited overseas enquiries rather than SOS seeking out that business, it could well result in that avenue opening earlier than forecast - particularly as it seems to have been positively alluded to today. At the moment this is on the website: International UpdateWe are sorry, we are not currently taking international orders. This service is on hold until further notice.

[raleigh43] 10/1/2023 13:30

Increasing user base. Record website user numbers. Add in international expansion. There will be bumps along the way but the future looks bright. Again, if the growing market share continues and sales expand, I believe they will eventually be on the receiving end of offers

[aleman] 10/1/2023 13:06

So, Sosandar continue to trade in line despite difficult markets. A reminder of MarketScreener consensus:

Year Revenue PTP
2023 £43m £2.1m
2024 £58m £3.5m
2025 £74m £5.7m

[aleman] 10/1/2023 11:19

Thanks for that. I was thinking Calendar 2024 but Y/E March 2024 would seem to marry today's comment with the presentation. A few small trials under way to start to test the water would make more sense for Y/E 2024.

[daz] 10/1/2023 11:10

In the last presentation they did say that they intended an international launch through a third party in FY24, with the year end in March, that could be in just a few months time.
I am sure they will be cautious though, so it's likely to be quite small scale to begin, especially as they don't have much cash and going on from there depending on market reaction

[aleman] 10/1/2023 10:58

The strength of our brand and product range continues to be recognised by third party retailers and as a result we are really excited by a number of new opportunities for growth being presented to us across various sales channels and territories.

I wonder if the last two words hint at trials for the international opportunities that were expected in 2024?

[thelongandtheshortandthetall] 10/1/2023 10:39

Next mentioned in their recent update that they are looking at carrying a greater number of third party lines.
With the understanding that the delivery will be at two days instead of next day etc
This gives next time to collect the goods from eg SOS and then forward them directly to the customer.
I imagine this is what SOS are referring to.

Each sale will get the brand in front of the right customers.
They might then go direct👍

[someuwin] 10/1/2023 10:29

"...The strength of our brand and product range continues to be recognised by third party retailers and as a result we are really excited by a number of new opportunities for growth being presented to us across various sales channels and territories."

I'm hoping that at some stage this year, one or more of their third party partners - Next, John Lewis & M&S will start trialling some of the more popular SOS lines in JV in-store ventures. We know SOS products are high quality and loved by their existing customers. (increasing repeat orders are testimony to this) and visibility in-store would dramatically improve SOS brand awareness and sales across all channels.

[danieldruff2] 10/1/2023 10:26

Will be interesting to compare the imminent results of NBrown, who report shortly. They are at the cheaper end of the market.

[raleigh43] 10/1/2023 10:14

My view is that this is only the beginning of the growth story. The management have all the traits to grow this story and that they will get sales over the 100 million mark in FY 25. At that point you add in international sales and that growth. Sooner or later a big fish makes an offer.

Barring a catasytophe, this is the way this is going.

Bought more this morning.

[laughton] 10/1/2023 09:47

Hmm. But didn't they say at the time of the results that sales for October/November were up over 40%? So does that mean sales for December were much lower?

[aleman] 10/1/2023 09:35

Buying kicked in when it hit the 200-day, which the 50-day now looks to be crossing.

[davwal] 10/1/2023 09:28

Bought in first thing this morning based on what looked a very strong update. Surprised to see it drop so took a few more. I suppose its the 'in line with expectations' bit that disappointed.

[aleman] 10/1/2023 09:19

They've just sold nearly as much in Q3/2023 as they did in all of FY2021 and margin is increasing. I've topped up.

[someuwin] 10/1/2023 09:00

Singer note. (BUY with 12m target price 45.0p)

Strong growth and margin gains over peak period

SOS has reported a strong Q3 with sales up 30%, and growth from all categories & channels. Gross margin was also up 100bps, partly reflecting the early benefits of the shift to lower cost sea freight, where more opportunity lies. Sosandar has a clearly differentiated and appealing product offer and its agile, design-led, data-driven approach is delivering market share gains. After a 5th consecutive quarter of profitability, and still with just c0.2% market share, the investment case for this exciting growth stock remains compelling. Buy.

[someuwin] 10/1/2023 08:47

...It'll be up later.

[forethought] 10/1/2023 08:46

Nice to see the cash increasing for the first time, without having to go to the market. Bit of a milestone for them.Increasing margin too.

[babbler] 10/1/2023 08:43

Why is this down???

[thelongandtheshortandthetall] 10/1/2023 08:31

Yes, bg23.
I liked that bit.

Gets the brand in front of potential customers.
Then they migrate to the Sosanadr website directly.

Almost like paid advertising.

[bg23] 10/1/2023 07:34

excellent - again. thank you team !!

interesting last comment:-

''The strength of our brand and product range continues to be recognised by third party retailers and as a result we are really excited by a number of new opportunities for growth being presented to us across various sales channels and territories."


exciting and interesting.

i'll keep adding as funds allow