Sosandar Share Discussion Threads

[davwal] 09/3/2023 12:34

Bit flat, innit? Meanwhile, I wonder if the supermarket might at some point do an 'Argos' on SOS before it grew too much. They'd have the wherewithal to really send it into the stratosphere!

[raleigh43] 08/3/2023 19:31

Every event I go to has ‘Last remaining tickets’ on the communication.

[laughton] 08/3/2023 15:43

And I thought the government (or some offshoot) had tried to stop that happening unless it was actually true.

[raleigh43] 08/3/2023 15:14

I always thought that was automatic to help win over with pre purchase rationalisation.

[simso] 08/3/2023 12:11

Looking at the TU website, it is interesting to look at the 61 Sosandar lines and note the frequency with which a flash message comes across, saying either "Selling Fast...X have been added to basket today" or "Popular....X people have recently viewed this page". I counted only 5 of the 61 which did not have one of the two messages.

I count this as interesting scuttlebut rather than hard evidence of success of course. Nontheless, I am sure Trading Standards do not allow Sainsburys flash messages on all their 1000's of lines saying literally everything is either popular of selling fast...so do see this as interesting/mildly encouraging?

[eeza] 08/3/2023 06:58

Yes, broker to broker trades are usully done at mid price.

[daijavu] 08/3/2023 01:48

It's impossible for anyone other than the parties to the trade to know if it was a buy or sell. It was a mid price trade, hence it was recorded as unknown. It could just as easily been a buy at a good price. There's no way we could know unless we were told by someone who was involved in the trade.

[eeza] 06/3/2023 13:54

Yes, but got a surprisingly good price for the quantity.

[forethought] 06/3/2023 13:49

Yep. There's bound to be an overhang of flippers from the offer but they'll soon be gone. Patience.

[eeza] 06/3/2023 13:37

Looks like a 250k delayed sell took the share price down.

[davwal] 05/3/2023 13:21

Should be a few words on initial Sainsbury take up.

[eeza] 05/3/2023 11:06

6 April I think.

[raleigh43] 05/3/2023 11:00

When might the next trading update happen? I think in 3 or 4 weeks time. I am thinking it will be very positive.

[raleigh43] 03/3/2023 17:26

A large buy. Guess we will find out who that was soon enough.

[thelongandtheshortandthetall] 03/3/2023 16:21

Yeah nice, Sosandar getting into it's stride now.
Diversified supply base, growing customers numbers And those customers appear to be developing into repeat customers.
The customer acquisition costs are low too - Now they've adjusted their strategy.

Its going to be interesting going forward for shareholders IMO.

[aleman] 03/3/2023 16:10

Looks like there's been another year added to forecasts somewhere. PTP is now predicted at £2.2m for March 2023,then £3.6m, then £5.9m for 2025. The net cash position for 2025 is £17m, up from £7.6m and £10m. These are based on 2025 sales of £72m from £43m then £58m. Why forecast strong numbers for 2025 when they could leave that another 6 to 12 months? There must be quite strong confidence to do that at this stage.

[someuwin] 03/3/2023 16:07

Huge 3.55m trade just gone through.

[raleigh43] 03/3/2023 16:00

Thanks. Excellent overview.
I expect Currie will acquire more in the near future.

[someuwin] 03/3/2023 15:50

Reminder of Singer's comment on the Sainsbury's agreement from last month.


Exciting new wholesale agreement with Sainsbury

SOS has agreed a wholesale partnership with Sainsbury’s. As well as launching initially online, it will then become a key fashion partner in stores too. This elevates Sosandar’s strategy from ‘pureplay’ to ‘multi-channel’, which will accelerate brand awareness, market penetration and growth. It may also broaden appeal for potential overseas partners. More good news. Buy.

Event – new 3rd party agreement
Sosandar has entered into a new wholesale agreement with Sainsbury’s. The partnership will start in the next few weeks, initially online-only and then in selected stores later this year as Sainsbury’s increases its collaborations with fashion brands to provide its customers with a broader selection of products. The initial range will include a curated selection of Sosandar's best-sellers & accessories.

Sainsbury’s.
To be one of Sainsbury’s key fashion partners is a significant milestone, and underlines the appeal of Sosandar’s differentiated collections, which continue to be expanded. As reported in SBRY’s recent update, it is gaining share in both Food and Non-Food. Its Tu Clothing brand generates c£1bn sales (c2% market share), and provides the grocer with a strong base to leverage share gains.

Multi-channel.
The wholesale supply arrangement starts in the spr/sum season, initially online-only
like its other 3P partnership arrangements. It will then extend to stores for the aut/wint season, thereby becoming Sosandar’s first multi-channel step. With c60% of the addressable market ‘offline’, and stores having recouped more share post-covid than expected, elevating the strategy from pureplay to multi-channel via a partnership like this will bolster brand awareness, market share and, potentially broaden its appeal and relevance with potential partners internationally.

Potential.
A large proportion of SBRY’s clothing sales are offline, with Tu currently sold in c400 of its larger superstores. As well as being stocked online, Sosandar is to become a key fashion partner in ‘selected stores’ within that part of the estate. Like all 3P partnerships, we believe Sosandar will develop the relationship gradually and, if successful, subsequently scale volumes up across both channels. This clearly represents a significant growth opportunity, particularly if Sosandar were to be rolled out over time to a significant number of those 400 stores with clothing departments.

Financials.
Investment will relate to w/c, namely deeper buys of existing styles (stock), albeit beneficial to ongoing scale/supplier negotiations, and debtors. While wholesale arrangements typically have a lower gross margin (we would expect 30-35%), SOS is utilising its existing resource, so associated costs should be limited to the variable picking/distribution costs (we would expect 5-10% tops).

Impact on earnings & valuation
Given its potential scale and bottom line contribution, this agreement could clearly add materially to future earnings. However, we we make no changes to forecasts yet, pending updates on the online performance in spr/sum (fiscal Q4 to Mar’23 and fiscal Q1 to Jun’23) and further details in relation to the number of stores the brand will be rolled out to for the aut/wint season. The positive implications for future earnings and brand expansion, should support rating expansion. We re-iterate our existing 45p target price and will look to review this at the prelims in May/June. Buy.

[raleigh43] 03/3/2023 15:34

Well done!

I would like to add but it is already the largest holding in my portfolio, so common sense and caution say I must just wait and enjoy the ride.

[dancing piranha] 03/3/2023 15:31

Nice, I bought another 25k this morning! Nice timing for a change.....

[someuwin] 03/3/2023 15:20

No buy quote available.

[raleigh43] 03/3/2023 10:02

It bodes well for the coming TU and overall results. More buying please!

[someuwin] 03/3/2023 08:35

Four weeks until year end.

Trading update the week after that.