Sosandar Share Discussion Threads

[raleigh43] 01/11/2023 08:05

Next revises profits upwards.
And we wonder why SOS sees vanue in having stores? I think it makes senses and adds value in the medium term and def in the long term.

[eeza] 29/10/2023 22:21

Bigger reductions on the SP, tho.

[oxford43] 29/10/2023 21:56

Good to hear advertising. They seem to always offer 20% off...

[eeza] 29/10/2023 21:46

Smacks of desperation, imo.

[davemac3] 29/10/2023 21:18

Sosander advertising on TV today with 20% off everything

[bamboo2] 29/10/2023 08:14

darrin, thanks, an interesting and thoughtful post.

[darrin1471] 28/10/2023 14:49

Online Only has been the winning bet until post lockdowns. The big retailers have taken their time but now offer a omnichannel offering that matches and maybe beats what online only can offer. The omnichannel offering will get even better IMO.
Omnichannel services originally offered to the biggest retailers are filtering down to mid size retailers and will eventually be available to the smallest retailer. Like barcode scanners and EPOS tills have done in the past.
SOS needs to be on the high street to be omnichannel. SOS will hold a lot of data on customers so they should be able to target locations to trial store formats.
This is a major but necessary shift in direction for SOS and some investors will exit and others enter. Its not going to be cheap or easy to start a high street chain. SOS will employ experts and the cost will be spread over only a few stores to begin with. Different clothing lines will sell better off a coat hanger on a high street. The Sosandar's website shows models in glamorous locations. How can this be reproduced on the high street without over investing. It is a difficult challenge.
With existing online customers SOS need the stores to be profitable in year one to make a rapid expansion possible.
Not holding currently.

[volsung] 27/10/2023 10:09

I see them in Dungannon

[bsg] 27/10/2023 09:58

I see them ending their working life in a single boutique in an upmarket town somewhere in the UK. SOS has long gone.

[daijavu] 27/10/2023 09:45

The founders have a record of short lived success, such as their journal that they ditched when they realised it had reached the end of its line. It folded not long after. Perhaps they simply overreach themselves and lose their way?

I wonder if there might be a white knight in the offing. To rescue the situation by buying them out before everything turns turtle?

[jackson83] 21/10/2023 21:26

WHO WILL BE THE FIRST TO sell OR buy BELOW 10P ??? next week




I remain a short seller




target 5p exit

[jackson83] 20/10/2023 17:47

THE INSIDERS are not waning in now so they know more bad news due



TIME TO SELL OR SHORT IT

4p at best

[jackson83] 20/10/2023 17:45

THE INSIDERS are not waning in now so they know more bad news due

[jackson83] 20/10/2023 17:44

10m valuations soon


opportunity to SELL/ SHORT IT LADS

[jackson83] 20/10/2023 17:39

SHARE PRICE HOLDING UP WELL...



overvalued worth around 4p / 5p.

[raleigh43] 20/10/2023 16:26

They plan to open a tiny number of shops in targeted towns.
In the meantime adding more international partners, growing the brand.
Now they are having a tough time of it.

[tomboyb] 20/10/2023 15:41

Wish you guys luck -

I will say a bit off topic on Bricks and Mortar, shops closing left right and centre -

Mind u QUIZ is still there lo -

[serratia] 20/10/2023 13:47

Small Caps suggest fair value 4 - 5p -



Sosander (SOS.L) - Trading & Strategic Update
This is a major change of strategy from this company that was previously pursuing rapid growth in order to scale into profitability. They are now stopping promotional activity to focus on profit and physical stores. They claim that:

The Company has spent much of Q2 FY24 trialling the planned reduction in promotional activity in order to validate its assumptions on consumer behaviour and the associated KPIs.

But given that they didn’t announce this in advance, we have no way of knowing if it is simply an excuse for current poor trading:


So, there is no real growth and a ballooning loss. The low growth is forecast to continue:

The Company expects revenue to grow by 10% year on year for FY24 to £46.8m and to remain in profit during the transition. It expects revenue in the year ending 31 March 2025 ("FY25") to grow by 17% year on year to £54.6m with an upward trajectory in profitability

They say "upward trajectory", not actually “profitable221;, so it could still be loss-making. The problem is that there is no shortage of low/no-growth clothes retailers that are struggling at the moment. By way of comparison, Quiz Clothing is on a rating of just 0.1x sales, following a very similar omnichannel strategy. If we put Sosander on a similar Price-to-Sales, this would be just a £5.5m valuation. Although Sosander has £7m cash vs c.£3m for Quiz, so the comparative value is probably more like £10m. This leaves a long way down from the current £28m market cap, despite an almost 40% fall this week.

[dicktrade] 20/10/2023 12:54

If the directors bought some shares soon at this price i might have another look, if not no chance.

[apad] 20/10/2023 12:14

A different slant.

Bricks and Mortar is horrific iff you are in them with legacy leases and a mixture of sites.

However, if you haven't got a legacy you can pick and choose class positions at low rents or purchase prices.

City Pub Company is doing exactly this. It's pubs are class acts in high footfall areas - often owned.
Compare that with the legacy industry.

However, to do this sort of thing well you need rising revenue to deploy. How about one shop every half year 😊

apad

[tomboyb] 20/10/2023 11:59

If SOS look to get into Bricks and Mortar it'll be very tough -

I think the market generally for e-taliors and Retail is pretty bad -

Bricks and Mortar is horrific at the moment -

[raleigh43] 20/10/2023 11:43

The share price has taken a big hit. A lot of e-tailers had revised downwards their sales results recently. I wrongly kept faith with SOS as my gamble was that they would buck the trend.

I am sat here today trying to list the positives:

Experienced and serious management.
No debt
7 Million in the bank
A growing brand that has a 'wealthier' target market.

But, orders well down. The message badly expressed at the recent update.

But, but it is the idea of opening shops that seems to be the main reason people are hating the new strategy. This was he part I liked! Mix up your access to buyer can only increase your turnover and the profits will be there is this high Capex line works.

Add in 2 international partners. (Consignment)
Add in the Sainsbury's and more of those to come.

And, if Labour get it, I expect that their future includes nice, vibrant town centres and not the quiet and shrinking ones we can often see now.

[bsg] 20/10/2023 11:21

Long road back now, probably only ever going to supply a nice living to the BOD.

[laughton] 20/10/2023 10:24

.......but have now announced how they plan to spend it (and more).

[volsung] 20/10/2023 09:59

The only good thing here is that they have a bit of cash