In the Style warns of profit hit despite trading boost

In the Style has warned that ongoing supply chain issues could impact its profitability in the near-to-medium-term thanks to ongoing supply chain disruptions, despite having seen a trading boost in recent months. 

The fashion retailer said it has “not been immune” to the impact of the ongoing freight and supply chain disruption that has recently impacted the sector.

Whilst it said it has “sought to utilise the most efficient channels wherever possible to ship product, increased freight costs and disruption to the timing of shipments are expected to remain for at least the remainder of the current financial year”.

Between April and August 2021, however, the group reported a revenue rise of 45% year-on-year, whilst gross order value was almost 50% ahead of the prior year. 

This was reportedly driven by an increasing profile and awareness of its brand, the expansion of its influencer collaboration model and increased customer demand reflecting the return of social events over the summer.

The group particularly noted a shift in demand towards occasionwear as more people continued to go out, yet this “typically carried a higher rate of returns than the leisurewear categories” that dominated sales during the prior year.  

In addition, a “faster than anticipated” progress on growing sales of its more inclusive size ranges also resulted in an increase in the rate of returns. As a result, net e-commerce sales for the period were 25% ahead of the prior year.

Adam Frisby, CEO and founder of In The Style, said: “We are pleased with the strong sales momentum achieved during the financial year to date. This momentum has been supported by increasing consumer awareness of In The Style and our clear brand mission to empower customers to be brave, embrace body confidence and, most of all, love themselves for who they are.  

“Central to our growth is our differentiated influencer collaboration model that creates strong customer connections, drives efficient customer acquisition, and gives us exposure to a broad range of customers.  During the Period we continued to add exciting new influencer partnerships as well as launching a number of successful collections.”

He added: “We continue to invest in our team and infrastructure to support our long-term growth, and despite the widely-publicised external headwinds expected to continue to impact across the retail industry over the coming months, we remain very well positioned to continue to grow In The Style and achieve the brand’s exciting potential.”