In The Style swings to pre-tax loss despite rise in revenue
Online fashion retailer In The Style has seen its annual revenue grow by 28% to £57.3 million in its first full year as a public company.
In the 12 months to 31 March, direct-to-consumer revenue increased by 23% to £44.7 million while wholesale revenue climbed by 52% to £12.6 million.
The retailer attributed the uplift to the ongoing expansion and optimisation of its influencer-based business model. Influencers in the period included the likes of Jac Jossa, Lorna Luxe Perrie Sian, Gemma Atkinson and Stacey Solomon.
However, adjusted EBTIDA came in at £0.6 million compared to £3.8 million a year earlier. In addition, the company made a pre-tax loss of £1.5 million versus a previous profit of £0.1 million after it invested in its technology platform and increased its working capital requirements due to growth within the wholesale channel.
Sam Perkins, chief executive of In The Style, 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.
“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..”
In The Style said trading in the first quarter of the new financial year was robust with year-on-year revenue growth in its direct-to-consumer channel of 12%.
Looking ahead, the company said it expects full year revenue to be broadly flat, with direct-to-consumer sales growing at mid-single digit rates. It is also forecasting an adjusted EBITDA loss of £2 million.
Perkins added: “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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