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Clothing & Shoes

In The Style profit halves amid supply chain issues

However, the group said there was ‘impressive growth’ against the ‘exceptional’ prior period, and saw revenue rise by 38.8% to £29.8m

In The Style has seen its profit halve in the six months ended 30 September 2021, falling by 51.3% as the group was hit by supply chain issues over the period. 

However, the group said there was “impressive growth” against the “exceptional” prior period, and saw revenue rise by 38.8% to £29.8m, up from £21.5m in H1 2021. On a two-year basis, revenue growth rocketed by 245.5%. 

In addition, direct-to-consumer revenue increased 23.4% to £23m while wholesale revenue soared 138.7% to £6.9m. 

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Nonetheless, EBITDA fell by 51.7% to £1.2m, against £2.5m in H1 2021, though on a two-year basis this was greater than the £0.6m loss reported in H1 2020. 

Overall, the group said that profitability was largely impacted by industry-wide supply chain issues, as well as a higher return rates against the prior year. 

It said this in part reflected the sales growth of its more inclusive size ranges, which is reportedly being addressed through increased investment in product and garment technology and fitting.

Since the end of the period, and through the Black Friday and December trading period in particular, the group said it has continued to perform well, with direct-to-consumer sales continuing their strong growth trajectory.

Notwithstanding the industry-wide supply chain disruption that is expected to continue into the second half, it said its board remains “very confident” in achieving the group’s growth plans and the brand’s “very exciting potential”. 

Adam Frisby, CEO and founder of In The Style, said: “In The Style has continued to deliver very strong sales growth and strategic progress during the first half of the financial year. The business has continued to build on its exceptional growth in the prior year, despite the reopening of physical retail and lifting of social restrictions during the Period, which reflects the strength of our brand and our truly differentiated influencer collaboration model.

“During the period we continued to expand the business with the launches of a number of exciting influencer partnerships, as well as successfully developing the Group’s growing wholesale channel through the launch of our partnership with ASDA.”

He added: “Whilst the global supply chain and freight disruption that has impacted across the industry is expected to persist for at least the remainder of the year, we are pleased to report that the strong sales performance achieved during the first half has continued through Black Friday and into the festive trading period so far.

“With this momentum, coupled with recent investment into our scaled-up operational and senior management teams, we look forward to continuing In The Style’s exciting growth and achieving our long-term vision for the brand.”

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