Women’s fashion etailer In The Style has reported a pre-tax loss for the first quarter of 2022, and said that it expects revenues for 2023 to be broadly flat.
The group, which also announced its first full year results as a public company, said revenues grew 28 per cent from £44.7m to £57.3m.
However, adjusted earnings before interest, taxes, depreciation and amortisation for the year dropped to £600,000 from £3.8m in 2021 while the group made a loss before tax of £1.5m, down from a £1m profit last year.
In The Style cited supply chain disruptions and inflationary pressures as a result of Covid-19 and the Russia-Ukraine conflict as contributing factors.
Increased product and freight costs have put pressure on gross margin, while unpredictable delivery timelines also impacted the business.
The group said while it had acted quickly to respond to disruptions in the supply chain it had made some substantial changes in its supplier base during the year, away from China and into new territories such as Morocco and India.
It added that because of cost management and increasing retail prices on its platform, “inflation was well managed” through its direct-to-consumer segment, but did impact its growing wholesale channel where prices are set in advance.
The Salford-based group added that it expects its move to a new warehouse in September to improve its fulfilment efficiency, although it also anticipates exceptional costs of £500,000 in relation to the move.
