In The Style, the popular digital womenswear fashion brand, has recently experienced both positive and negative developments. On the positive side, the company announced impressive performance during the crucial trading period around the holidays, known as the ‘golden quarter’. However, there is also the unfortunate news that the brand’s CFO and COO, Paul Masters, will be departing in March due to health issues.

Masters has played a crucial role in driving the growth of In The Style. Under his leadership, the company successfully went through an initial public offering (IPO), which significantly boosted its profile and financial standing. His departure will undoubtedly leave a void in the executive team. To fill the position, Richard Monaghan from Victorian Plumbing will step in as CFO in mid-March.

Despite the setback with Masters’ departure, In The Style reported excellent growth during the eight weeks leading up to December 31. Net sales for this period increased by an impressive 21.5% compared to the previous year, amounting to £11.2 million. This growth is even more remarkable when compared to the same period two years ago, before the pandemic hit, with a whopping increase of 225.9%. In addition, the brand’s wholesale channel experienced growth through partnerships with prominent retailers such as ASOS, Lipsy, and ASDA.

The key driver of In The Style’s growth was its direct-to-consumer (DTC) e-commerce channel, which includes the brand’s website and app. DTC net sales saw a significant increase of 34.5% year-on-year, amounting to £9.1 million. This represents a growth of 204.7% when compared to two years ago. The brand’s app also played a crucial role in this growth, with sales increasing by 72.3% year-on-year and accounting for 67.1% of total sales during the period.

In addition to impressive sales figures, In The Style also saw growth in other key performance indicators (KPIs). The brand experienced an increase in average order value, website visits, and conversion rate, showcasing strong customer engagement and satisfaction.

However, it’s worth noting that In The Style, like many other fashion brands, is facing ongoing supply chain constraints. These industry-wide challenges have led to increased costs and longer transit times. To address this issue, the brand plans to offer more discounts to clear inventory before new launches. Some product launches initially planned for the fourth quarter may be postponed to the following financial year.

As a result of these supply chain issues, In The Style projects an adjusted EBITDA margin of 1% to 2% for the fiscal year ending on March 31. Despite this setback, CEO Sam Perkins remains optimistic about the brand’s future. He attributes the brand’s strong sales performance during the golden quarter to its appeal, positive momentum in key customer metrics, and successful collaborations with influencers. Perkins also mentions exciting plans for new partnerships and collection launches in the near future.

Useful links:
1. In The Style Website
2. ASOS Website