In The Style Christmas sales spike but warns on margins
Sales at In The Style jumped by 21.5% in the run up to Christmas but the online retailer warned on margins as supply chain disruption continues to have an impact.
The influencer fashion brand revealed Christmas trading for the eight weeks to 31 December 2021 increased to £11.2m driven by a strong performance across the group’s website and app.
Sales through the app increased by 72.3% year on year and represented 67.1% of total revenues for the Christmas period with strong demand for partywear, festive family pyjamas and charity Christmas jumpers.
Gross order value increased 41.4% to £15.2m reflecting growing customer demand for the In The Style brand.
It said the “positive momentum” was also underpinned by the group’s influencer model, including a number of collection launches and new influencer partnerships.
In The Style expects strong revenue growth for the financial year ending 31 March 2022 to be in line with market expectations of £55m to £57m.
However, it said the industry-wide global supply chain disruptions continue to result in additional cost pressures as well as extended transit times.
It said this has led to an increased level of discounting to clear some ranges ahead of subsequent launches and the group currently expects some launches scheduled for Q4 to fall into 2023 resulting in a smaller volume of full price sales launches.
As a result, the board anticipates FY22 adjusted EBITDA margin to be in the range of 1% to 2%.
Sam Perkins, CEO of In The Style, said: “The Group has continued its excellent growth to achieve a strong sales performance during the important golden quarter.
“This outcome was achieved despite the well-documented uncertainties facing both consumers and retailers during the period and is testament to the appeal of the In The Style brand, continued positive momentum across several key customer metrics, and the success of our recent influencer collaborations.”
The group has also announced that CFO & COO Paul Masters is stepping down in March to focus on his health. He will be succeeded by Richard Monaghan.