TIDMITS

RNS Number : 6119J

In The Style Group PLC

28 April 2022

28 April 2022

In The Style Group plc

("In The Style", the "Company" or the "Group")

Full Year Trading Update

Another encouraging year of strong sales and customer growth

In The Style Group plc (AIM: ITS), the disruptive and inclusive digital womenswear fashion brand with an innovative influencer collaboration model, today provides an update on trading for the financial year ended 31 March 2022 ("FY22").

In its first full year as a public company, In The Style continued to achieve strong year-on-year revenue growth. The Group expects, subject to audit, to report revenue of GBP57.3m, which equates to 28% growth year-on-year and 197% growth on FY20 (FY21: 44.7m; FY20: GBP19.3m), and is marginally ahead of the guidance issued by the Company in January 2022. Adjusted EBITDA margin will be in line with that guidance at 1%.

During the year, In The Style continued to leverage its highly distinctive social-influencer collaboration model, launching collaborations with 27 influencers. This influencer base included both established names such as Jac Jossa and Lorna Luxe along with a number of new influencers including Perrie Sian, Gemma Atkinson and Stacey Solomon, with whom In The Style launched its first ever sustainable collection.

The Group attracted, on average, 33k new customers a month through FY22 to grow its active customer base(1) . Consumer engagement with the In The Style proprietary app continues to be strong, with over 850,000 downloads in the year and this contributed to a 9% increase in overall order frequency(2) and a 21% increase in average order value(3) year-on-year. After an inconsistent H1, return rates have continued to normalise and were in line with management's expectations through H2 FY22.

The Group continued to grow its reach through new considered wholesale partnerships including ASDA, and these have contributed to good growth in our wholesale channel.

Industry-wide challenges in the global supply chain are well documented and, as previously indicated by the Group, resulted in pressure on gross margin through FY22.

Whilst macroeconomic pressures are expected to persist over the coming months, the Group's strong brand proposition and resulting pricing power has partially mitigated the impact of cost inflation on gross margin. Management was also encouraged that for a period in January and February 2022, prior to Russia's invasion of Ukraine, freight costs somewhat normalised.

The Board is confident that the execution of Group's strategic initiatives and the strong pipeline of new influencers will maintain the strong sales momentum achieved during FY22 and improve profitability during FY23.

Sam Perkins, CEO at In The Style, commented:

"I am pleased to report that In The Style achieved a strong year of revenue and customer growth. This continues to be underpinned by the strength of our inclusive brand and our highly distinctive social-influencer collaboration model, which has the major advantage of creating real engagement with consumers in a cost-effective way. This creates a robust economic model, provides flexibility to respond rapidly to changing consumer trends and ultimately, positions the Group well for sustainable growth.

"Whilst there are macroeconomic challenges facing all retail businesses right now, we are managing our cost base tightly. Given our differentiated proposition and the investments we've made in our team, technology and infrastructure during recent periods, In The Style is very well positioned to continue its impressive growth and improve its profitability during FY23."

(1) Active customers is defined as the number of consumers who have made at least one purchase in the last twelve months through either the website or the app.

(2) Order frequency has been defined as the total number of orders placed by consumers divided by the number of active customers.

(3) Average order value is defined as gross sales including sales tax divided by the number of orders.

In The Style Group plc Via Hudson Sandler

Jim Sharp, Non-Executive Chairman

Sam Perkins, CEO

Rich Monaghan, CFO

   Liberum Capital Limited (Nomad and Broker)                                  +44 (0)20 3100 2000 

Clayton Bush

Scott Mathieson

Ed Thomas

Miquela Bezuidenhoudt

Hudson Sandler +44 (0)20 7796 4133

Alex Brennan inthestyle@hudsonsandler.com

Lucy Wollam

Ben Wilson

The information contained within this announcement is deemed by the Group to constitute inside information as stipulated under the Market Abuse Regulation (EU) No. 596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018.

Notes to Editors

In The Style is a fast-growing digital womenswear fashion brand with an innovative social media influencer collaboration model.

Founded in 2013 by entrepreneur Adam Frisby, the brand champions female empowerment, inclusivity, body positivity and real beauty.

The brand's innovative and highly adaptable influencer collaboration model, which sees it work with influencers on a long-term basis to collaboratively design, develop and promote branded collections, differentiates it from competitors.

In The Style currently partners with a stable of 25+ influencers, including Jac Jossa, Stacey Solomon and Lorna Luxe. Together they enjoy a combined global social media reach of over 30m followers.

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April 28, 2022 02:01 ET (06:01 GMT)

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