In The Style profitability hit by supply chain disruption but fashion firm ‘confident’ in growth plans
Fast fashion firm In The Style said its profitability took a hit thanks to supply chain issues as well as more shoppers returning clothes this year.
The womenswear reported a drop in profit before tax, standing at £0.9m, in interim results for the six months ended 30 September. This is down on the £1.8m posted for the same period a year ago.
Shares tumbled more than ten per cent in the group on Wednesday morning and were down almost eleven per cent by the evening.
An increased return rate “in part” reflected sales growth of the group’s “more inclusive size ranges,” In The Style said. This was “being addressed through increased investment in product and garment technology and fitting.”
Revenue jumped 38.8 per cent to £29.8m, up on £21.5m compared to a year ago. In comparison to pre-pandemic comparatives, it logged a 245.5 per cent leap in revenue from 2019, with shoppers turning online during Covid.
The firm – which debuted on the AIM market in spring this year – posted that EBITDA decreased to £1.2m, down on £2.5m a year ago.
Despite supply chain disruption expected to continue into the second half by the group, In The Style said its board was still “very confident” in achieving its growth plans.
Adam Frisby, CEO and founder of In The Style, said the brand had continued to “build on its exceptional growth” last year, even with physical stores reopening and social restrictions easing in the period.
He added: “While 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.”