Shares of Salford-based fashion firm In The Style fell about 30% on Friday after it published a trading update for the three months to December 31, 2022, showing revenue for the quarter fell 22% on the prior year — and that it expects its annual revenue in the financial year to March 31 to fall.

The firm also said it expects to report an adjusted EBITDA loss of between £4.25 million and £4.75 million for the year.

In The Style said the strategic review it announced in December is ongoing and “may or may not result” in a sale of the company or some or all of the group’s business or assets.

The company’s shares have fallen about 90% over the past year, reducing its stock market value to about £4 million.

“Following an encouraging performance in November, the trading environment in December was challenging,” said In The Style.

“This reflected high levels of markdown activity across the market, disruption to delivery services and the impact of cost-of-living pressures on our customers …

“Cash at the end of December was £3.2 million with the group’s invoice discounting facility which would provide an additional £0.4 million of liquidity remaining undrawn …

“We now expect revenue for the full year to be in the region of £46 million reflecting market-wide cost-of-living pressures on consumer demand, higher levels of markdowns and a reduction in wholesale demand.

“As a result of lower than anticipated revenue and gross margins, it is now expected that the group will report an adjusted EBITDA loss of between £4.25 million and £4.75 million for the year.

“The group will continue to focus on cash management and liquidity.”

In The Style interim CEO Adam Frisby said: “Following an encouraging performance in November and throughout the important Black Friday trading period, the trading environment in December was more difficult.

“This reflected high levels of markdown activity across the market, disruption to delivery services, and the impact of cost-of-living pressures on our customers.

“Despite these challenges, we are encouraged by the positive customer reaction to FITS, our own brand range, which provides an exciting opportunity for us to further leverage the strengths of our influencer collaboration model.

“We are firmly focused on launching exciting, unique and inclusive new collections for our customers in collaboration with our influencer partners as well as tightly managing stock, costs, and cash.

“I remain absolutely confident in the fundamental strengths of the In The Style brand as well as our differentiated model.”