In The Style impacted by “difficult” trading environment in December
In The Style said it faced challenging trading conditions in the run-up to Christmas with total revenue declining by 22%.
In the three months to 31 December, direct-to-consumer revenue fell by 13% after trade was impacted in December by high levels of markdown activity across its market, the cost of living crisis, and disruption to delivery services.
In The Style operates primarily with an influencer collaboration model.
Adam Frisby, interim chief executive of In The Style, said: “Following an encouraging performance in November and throughout the important Black Friday trading period, the trading environment in December was more difficult. This reflected high levels of markdown activity across the market, disruption to delivery services, and the impact of cost-of-living pressures on our customers.
“Despite these challenges, we are encouraged by the positive customer reaction to FITS, our own brand range, which provides an exciting opportunity for us to further leverage the strengths of our influencer collaboration model.”
In The Style said it managed stock levels well through the peak trading months and closed the quarter with stock of £3.2 million compared to £3.6 million at the same time in 2021.
The retailer is currently in the middle of a strategic review which could lead to a possible sale of the business.
Looking to the outcome of its full year, In The Style said it now expects revenue to be in the region of £46 million. As a result of lower than anticipated revenue and gross margins, it also expects to report an adjusted EBITDA loss of between £4.25 million and £4.75 million for the year.
Frisby added: “We are firmly focused on launching exciting, unique and inclusive new collections for our customers in collaboration with our influencer partners as well as tightly managing stock, costs, and cash. I remain absolutely confident in the fundamental strengths of the In The Style brand as well as our differentiated model.”
