Salford online fashion brand In The Style has warned it could lose almost £5m in the full financial year to end of March 2023.
In a trading update for the three months to end of December 2022 the “the disruptive digital womenswear fashion brand with an innovative influencer collaboration model” lowered its FY revenue expectations to around £46m, resulting in an adjusted EBITDA loss between £4.25m and £4.75m.
In the 12 months to the end of March 2022, In the Style reported revenue of £57.3m, up from £33.7m, and pre-tax losses of £1.5m compared to a profit of £125,000 in the prior year.
Adam Frisby, founder and interim CEO, 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.”
On a more positive note, Frisby added: “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. I remain absolutely confident in the fundamental strengths of the In The Style brand as well as our differentiated model.”
The company recently appointed Lincoln International to lead a strategic review which could lead to a full or part sale of the business.
