In The Style fell into the red with its first full-year results as a listed company, as boss Sam Perkins warned that the year ahead would be “a challenging one for consumers and retailers” and lead to widening losses.
In The Style made a pre-tax loss of £1.5m in the year to March 31, 2022, down from a pre-tax profit of £100,000 the previous year.
The fashion etailer’s adjusted EBITDA during the period slumped 85% year on year to £600,000 from £3.8m the previous year, as product cost increases hit the business’ wholesale gross margin.
In The Style’s group revenue rose 28% year on year to £57m, with DTC and wholesale revenue up 23% to £45m and 52% to £13m respectively.
The online fashion retailer’s total orders increased 13% during the financial period to 1.5 million, while its average order value rose 21% to £52, order frequency rose 9% and active customer numbers grew 4%.
In The Style launched 193 collaborations and collections in partnership with 27 influencers during the year, and highlighted its tie-up with Stacey Solomon its most successful launch of the year. The fashion etailer’s tie-up with the Loose Women presenter and former X Factor contestant peaked at 500 orders per second on launch night.
In The Style’s tie-up with Dame Deborah James, also known as Bowel Babe, in the final weeks of her life, also raised £1.25m for Cancer Research, with all profits from the range donated to charity.
In The Style said it expected revenue in its current financial year to be broadly flat as the business focuses on its DTC arm and plans to move into a new warehouse. Against this backdrop alongside “uncertain market conditions” the fashion etailer expects to report an adjusted EBITDA loss of £2m for its current financial year.
Chief executive Sam Perkins said: “I am pleased to report that in our first full year as a public company In The Style has delivered further strong revenue growth, representing almost +200% on a two-year basis. This has been supported by encouraging improvements across all our key customer and brand metrics.
“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.”
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