In The Style update shows strong progress despite supply chain pressures
Fashion e-tailer In The Style delivered a full-year trading update on Thursday and it showed the business going from strength to strength.
The company, which operates via an influencer collaboration model, said the 12 months to 31 March — its first year as a stock exchange listed company — saw strong year-on-year revenue growth.
Subject to audit, it expects to report revenue of £57.3 million, which equates to 28% growth year-on-year and 197% growth on a two-year basis. That would be marginally ahead of the guidance issued by the company in January 2022. However, the adjusted EBITDA margin will be in line with that guidance at 1%.
During the year, In The Style launched collaborations with 27 influencers, including Jac Jossa, Lorna Luxe, Perrie Sian, Gemma Atkinson and Stacey Solomon (with whom In The Style launched its first ever sustainable collection).
On average, it saw 33,000 new customers a month and consumer engagement with its app “continues to be strong”, with over 850,000 downloads in the year.
This helped it to a 9% increase in overall order frequency and a 21% increase in average order value.
It added that after an inconsistent H1, return rates “have continued to normalise” and were in line with management's expectations through H2.
The company also “continued to grow its reach through new considered wholesale partnerships, including Asda, and these have contributed to good growth in our wholesale channel”.
That said, the well-publicised supply chain issues “resulted in pressure on gross margin through FY22”. And the company expects macroeconomic pressures to persist over the coming months. But it said its “strong brand proposition and resulting pricing power has partially mitigated the impact of cost inflation on gross margin”.
Management was also encouraged that for a period in January and February 2022, prior to Russia's invasion of Ukraine, freight costs “somewhat normalised”.
CEO Sam Perkins said: “I am pleased to report that In The Style achieved a strong year of revenue and customer growth. This continues to be underpinned by the strength of our inclusive brand and our highly distinctive social-influencer collaboration model, which has the major advantage of creating real engagement with consumers in a cost-effective way. This creates a robust economic model, provides flexibility to respond rapidly to changing consumer trends and ultimately, positions the group well for sustainable growth.”
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