In The Style revenues increase while pre-tax profit is hit by supply chain issues
In The Style, the fast growing, influencer-driven online fashion retailer, has posted its interim results for the six months ending 30 September 2021, revealing a 38.8% increase in group revenue to £29.8 million compared to the same period last year.
Gross profit has risen by 28.7% year on year, from £10.9 million to £14 million in the six months to September. However, pre-tax profit dropped by 51.3% to £0.9 million. Responding to this decrease, the retailer said that its profitability was impacted by industry-wide supply chain disruption as well as higher return rates against the prior year.
In The Style expects the supply chain disruption will continue into the second half, but its board remains confident in achieving the group's growth plans.
Direct-to-consumer net revenue was up by 23.4% to £23 million. Wholesale revenue increased by 138.7% to £6.9 million, compared to £2.9 million in 2020.
In The Style also credits the launch of ten new influencer partnerships and its expansion of wholesale partnerships in contributing to the brand's successes over the period, along with its In The Style app, which made up 63% of its total e-commerce sales.
Since the end of the period and with Black Friday and December trading so far, the business reports it is performing well with direct-to-consumer sales, developing its strong growth trajectory.
Adam Frisby, CEO and Founder of In The Style, said: "Whilst the global supply chain and freight disruption that has impacted across the industry is expected to persist for at least the remainder of the year, we are pleased to report that the strong sales performance achieved during the first half has continued through Black Friday and into the festive trading period so far.
"With this momentum, coupled with recent investment into our scaled-up operational and senior management teams, we look forward to continuing In The Style’s exciting growth and achieving our long-term vision for the brand.
“During the period we continued to expand the business with the launches of a number of exciting influencer partnerships, as well as successfully developing the Group’s growing wholesale channel through the launch of our partnership with ASDA."
It was recently announced that Frisby would be handing of the CEO reins of the AIM-listed business to Sam Perkins, formerly of The Very Group, and taking up the position of Chief Brand Officer.