In The Style, a digital womenswear fashion brand, continues to face challenges as it struggles with growing losses and an uncertain future. The company recently reported a difficult trading period for the three months ending on December 31, 2022. Despite seeing some encouraging performance in November and during Black Friday, In The Style had to deal with high levels of markdown activity, disruptions in delivery services, and the impact of cost-of-living pressures on its customers.

During this quarter, the company experienced a 22% decrease in total revenue compared to the previous year, with direct-to-consumer revenue down 13%. The gross margin for the quarter was lower than expected, but it was in line with other companies in the industry. In terms of inventory management, In The Style performed well and ended the quarter with stock worth £3.2 million. The company also had cash reserves of £3.2 million at the end of December, and it had an undrawn invoice discounting facility that could provide an additional £0.4 million in liquidity.

In The Style previously reported revenue of £57.3 million for the 12 months ending in March 2022, which was a significant increase from £33.7 million in the previous year. However, the company faced pre-tax losses of £1.5 million, compared to a profit of £125,000 in the prior year.

Looking ahead, In The Style anticipates revenue for the full year to be around £46 million due to cost-of-living pressures across the market, higher markdown levels, and a decrease in wholesale demand. Consequently, the company expects to report an adjusted EBITDA loss between £4.25 million and £4.75 million for the year. In December, In The Style announced an ongoing strategic review of the business, which may result in a sale of the company or its assets.

Despite the challenges it faces, Adam Frisby, the interim CEO of In The Style, remains confident in the fundamental strengths of the brand. He highlighted the positive customer response to FITS, the company’s own brand range, and emphasized the opportunity to leverage the strengths of their influencer collaboration model. In The Style is focused on launching new collections in collaboration with its influencer partners while effectively managing stock, costs, and cash.

In conclusion, In The Style is going through a tough period as it grapples with losses and an uncertain future. The company’s strategic review will determine its next steps, but for now, it remains dedicated to building its brand and offering unique and inclusive collections to its customers.

Useful Links:
1. In The Style Official Website
2. Retail Gazette – News on Retail Industry