Fashion e-tailer In The Style is exploring a potential sale of the company and a leadership change. The decision comes as the company’s current market value does not accurately reflect its growth potential and shareholders have limited liquidity. To assist in this process, In The Style has initiated a strategic review and has enlisted the help of Lincoln International.

While the outcome of the review is uncertain, CEO Sam Perkins has confirmed that he will step down at the end of the year. Founder Adam Frisby will be returning to the company as Chief Brand Officer to assume the top position.

In the financial realm, In The Style reported strong trading results in its direct-to-consumer channel during the peak period in November. The company experienced a record-breaking Black Friday Cyber Fortnight, with a 6% increase in gross order value compared to the previous year. Average order value also rose by 12% year-on-year.

However, In The Style anticipates that its direct-to-consumer revenue for the full year will be similar to the previous financial year due to uncertain consumer sentiment. Additionally, the company expects wholesale revenue in the second half of the year to be on par with the first half, which has presented challenges.

The release of the interim results also provided insights into the company’s performance in the first half of the year. Direct-to-consumer revenue decreased by 1% to £22.8 million, while wholesale revenue fell by 45% to £3.7 million. Overall group revenue was down 11% at £26.5 million, but still significantly higher compared to three years ago.

Despite the decline in revenue, In The Style managed to achieve a higher gross profit margin of 48.5% and successfully collaborated with 19 influencers, releasing 72 collections through its social collaboration model. The company also introduced its own-brand collection called ‘FITS’, which received positive feedback from customers and contributed to improved profitability.

In addition, In The Style established a concession model with one of its digital partners, moving closer to stockless partnerships. However, the company decided to end its in-store trial partnership from the previous year.

Founder Adam Frisby expressed satisfaction with the company’s progress, noting that they have achieved the strategic priorities set in the first half of the year. He highlighted the strong performance of the direct-to-consumer channel and the company’s ability to maintain engagement levels and customer base, which serve as a solid foundation for future growth. Frisby also acknowledged the potential challenges in the second half of the year but remains optimistic about the business’s long-term prospects.

In summary, In The Style’s potential sale and CEO transition demonstrate the company’s commitment to unlocking its true growth potential. Despite facing obstacles in the wholesale sector, the company has delivered strong results in its direct-to-consumer channel and has successfully launched collaborations and its own-brand collection. With a strategic review in motion and new leadership at the helm, In The Style is positioning itself to navigate the evolving retail landscape and achieve long-term success.

Useful links:
1. In The Style website
2. Lincoln International website