Salford-based fashion firm In The Style announced that it expects, subject to audit, to report full-year revenue of £57.3 million, which equates to 28% growth year-on-year and 197% growth on two years ago.
£57.3 million would be marginally ahead of the guidance issued by the company in January 2022.
Publishing an update on trading for the financial year ended March 31, 2022, its first full year as a public company, In The Style said adjusted EBITDA margin will be in line with that guidance at 1%.
“During the year, In The Style continued to leverage its highly distinctive social-influencer collaboration model, launching collaborations with 27 influencers,” said the company.
“This influencer base included both established names such as Jac Jossa and Lorna Luxe along with a number of new influencers including Perrie Sian, Gemma Atkinson and Stacey Solomon, with whom In The Style launched its first ever sustainable collection.
“The group attracted, on average, 33k new customers a month through FY22 to grow its active customer base.
“Consumer engagement with the In The Style proprietary app continues to be strong, with over 850,000 downloads in the year and this contributed to a 9% increase in overall order frequency and a 21% increase in average order value year-on-year.
“After an inconsistent H1, return rates have continued to normalise and were in line with management’s expectations through H2 FY22.
“The group continued to grow its reach through new considered wholesale partnerships including ASDA, and these have contributed to good growth in our wholesale channel.
“Industry-wide challenges in the global supply chain are well documented and, as previously indicated by the group, resulted in pressure on gross margin through FY22.
“Whilst macroeconomic pressures are expected to persist over the coming months, the group’s strong brand proposition and resulting pricing power has partially mitigated the impact of cost inflation on gross margin.
“Management was also encouraged that for a period in January and February 2022, prior to Russia’s invasion of Ukraine, freight costs somewhat normalised.
“The board is confident that the execution of group’s strategic initiatives and the strong pipeline of new influencers will maintain the strong sales momentum achieved during FY22 and improve profitability during FY23.”
In The Style CEO Sam Perkins said: “I am pleased to report that In The Style achieved a strong year of revenue and customer growth.
“This continues to be underpinned by the strength of our inclusive brand and our highly distinctive social-influencer collaboration model, which has the major advantage of creating real engagement with consumers in a cost-effective way.
“This creates a robust economic model, provides flexibility to respond rapidly to changing consumer trends and ultimately, positions the group well for sustainable growth.
“Whilst there are macroeconomic challenges facing all retail businesses right now, we are managing our cost base tightly.
“Given our differentiated proposition and the investments we’ve made in our team, technology and infrastructure during recent periods, In The Style is very well positioned to continue its impressive growth and improve its profitability during FY23.”