Pre-tax losses for In The Style despite rise in revenues

Womenswear etailer In The Style has reported a pre-tax loss for the year to 31 March 2022 and has warned that it expected revenues for 2023 to be broadly flat.

The group, which announced its first full year results as a public company, said revenues grew 28% from £44.7m to £57.3m.

However, adjusted EBTIDA for the year dropped to £600,000 from £3.8m in 2021 while the group made a loss before tax of £1.5m, down from last year’s £1m profit.

In The Style said it wasn’t immune to worldwide supply chain disruptions and inflationary pressures as a result of Covid-19 and the Russia-Ukraine conflict.

Increases to product costs and the cost of freight has put pressure on gross margin whilst delivery timelines became less predictable which had an impact on its launch schedule.

The group said while its teams were able to ‘react quickly’ to any disruption in the supply chain it led to some substantial changes in its supplier base during the year, away from China and into new territories such as Morocco and India.

It said because of this cost management and increasing retail prices on its platform, ‘inflation was well managed’ through its direct-to-consumer segment, but it did impact its growing wholesale channel where retail prices are set in advance.

Looking ahead at 2023 the retailer said it was planning for Group revenue ‘to be broadly flat, with DTC revenue growing at mid-single digit rates.’

It added that revenue from its wholesale channel is expected to decline at a double-digit rate as it focuses on its digital partners.

The Group is also moving to a new warehouse in September which it expects to improve its fulfilment efficiency as a result. It anticipates exceptional costs of £500,000 in relation to the move.

Sam Perkins, CEO of In The Style Group plc said: “Our purpose is to inspire confidence, and this drives us to create unique products that help our customers to feel great about themselves.

“We have a strong, inclusive brand and differentiated influencer collaboration model which gives us fantastic reach, highly effective marketing, and broad customer appeal. This underpins our long-term confidence to create one of the UK’s most exciting fashion brands.

“This year is expected to be a challenging one for consumers and retailers. We are taking actions to respond including prudent cost control, cash management and executing against our refined growth strategy.”