In The Style sales up 28% but higher costs tip it into a loss
In The Style, the influencer-led fast fashion retailer, posted sales up 28% in the year to 31 March 2022 but higher costs tipped it into a loss, which it expects to increase in the coming year.
During the period, sales hit £57.3 million (up from £44.7m) with direct-to-consumer (DTC) revenue up by 24% at £44.7m and wholesale revenue up 52% at £12.6m. Adjusted EBITDA for the year reached £0.6m (down from £3.8m) but at pre-tax level it posted a loss of £1.5m versus last year's profit of £0.1m.
Looking ahead, amid "very uncertain" market conditions, In The Style said it was expecting revenue to remain flat for the coming financial year with an adjusted EBITDA loss for the year of £2m.
Highlights from the last financial year include a 13% increase in total orders to 1,523,000 and a 21% increase in average order value to £52. New customers increased by 391,000 in the year while the active customer base grew by 4% to 677,000.
In The Style's unique business model involves creating collections with high profile influencers and sharing the proceeds to ensure the influencer is fully invested in the collection's success.
During the past year it created 193 collections with 27 influencers adding new names to its line-up including TV personalities Jac Jossa and Stacey Solomon and influencers Lorna Luxe and Perrie Sian.
It recently created a line with the late Dame Deborah Dames to promote her bowel cancer awareness with the proceeds going to Dame Deborah's Bowel Babe fund for Cancer UK. The line raised £1.25m.
At the start of the year new CEO Sam Perkins, formerly of Very Group, took over replacing In The Style founder Adam Frisby who remains as chief brand officer.
Commenting on the results Perkins, said: "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.
“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."