TIDMITS
RNS Number : 8799Y
In The Style Group PLC
19 January 2022
19 January 2022
In The Style Group plc
("In The Style", the "Company" or the "Group")
Trading Update and Board Update
In The Style, the fast-growing digital womenswear fashion brand
with an innovative influencer collaboration model, is pleased to
provide an update on Christmas trading for the eight weeks to 31
December 2021 (the "Period") as well as an update on its Board of
Directors.
Trading Update
- Gross order value increased 41.4% to GBP15.2m on a strong
comparable performance, reflecting growing customer demand for the
In The Style brand, on a two-year basis this represents growth of
178.4%
- Total net sales increased 21.5% to GBP11.2m or 225.9% on a two-year basis
- Further progress across operational KPIs, including average
order value, website visits and conversion rate
- Continued good performance of growing wholesale channel
- Returns rates have reduced over the Period versus H1 in line
with expectations given the product mix. Good progress in
implementing processes to reduce future return rates
- Top line growth in line with expectations achieved, despite
the ongoing industry wide headwinds caused by supply chain
constraints
In The Style continued to deliver strong growth during the
Christmas trading period. Gross order value (GOV), a pre-returns
metric that indicates underlying customer demand, increased 41.4%
to GBP15.2m as the Group continued to deliver good growth against
the strong prior year performance. GOV increased 178.4% on a
two-year basis. Total net sales increased 21.5% to GBP11.2m, or
225.9% on a two-year basis.
Growth continues to be driven by a very strong performance
across the Group's direct to consumer (DTC) e-commerce channel,
which comprises the In The Style website and proprietary app. DTC
net sales, or sales post-customer returns, increased 34.5% year on
year to GBP9.1m, representing an increase of 204.7% on a two-year
basis. Sales through the In The Style App increased by 72.3% year
on year and represented 67.1% of total sales for the Period.
This positive momentum was underpinned by the continued
expansion of In The Style's differentiated influencer model,
including a number of well-received launches of new influencer
partnerships and very successful collection launches with existing
influencer partners. The Group also experienced very strong
consumer demand across its partywear and seasonal categories, in
particular its very popular festive family pyjama ranges and
charity Christmas jumper collection.
The Group's wholesale channel, comprising both digital and
retail partnerships including ASOS, Lipsy and ASDA, continued to
perform well and in line with management expectations.
The Company continues to make good progress implementing
processes to reducing return rates, which, in line with the Board's
expectations, were lower in the Period versus H1 supported by
seasonal changes to the product mix.
FY22 outlook
Following the positive sales performance during the Christmas
period, the Group anticipates achieving strong revenue growth for
the financial year ended 31 March 2022 (FY22) in the range of
GBP55m to GBP57m, in line with market expectations.
The industry-wide global supply chain constraints continue to
result in additional cost pressures as well as extended transit
times. Less predictable transit times have sporadically impacted
the Group's launch timetable and resulted in shorter sales periods
for some ranges. Careful management and flexibility in the Group's
supply chain has ensured that this did not impact overall sales
figures during the Period. However, this has led to an increased
level of discounting to clear some ranges ahead of subsequent
launches and the Group currently expects some launches scheduled
for Q4 to fall into FY23, resulting in a smaller volume of full
price sales launches in Q4. As a result of these supply chain
constraint issues, the Board now anticipates reporting a FY22
Adjusted EBITDA margin in the range of 1% to 2%.
Sam Perkins, CEO of In The Style, commented: "The Group has
continued its excellent growth to achieve a strong sales
performance during the important golden quarter. This outcome was
achieved despite the well-documented uncertainties facing both
consumers and retailers during the period and is testament to the
appeal of the In The Style brand, continued positive momentum
across several key customer metrics, and the success of our recent
influencer collaborations.
"I'm very excited to have now joined In The Style. Underpinned
by the strength of the Group's differentiated business model and
strong brand as well as the important investments that have been
made in ITS's infrastructure, technology and team, we have so many
exciting long-term growth opportunities to go for. We have a strong
pipeline of new partnerships and collection launches, and I am
looking forward to working closely with our excellent team to
achieve our objectives ."
Board update
In a separate announcement also released today, the Group has
announced that CFO & COO Paul Masters has informed the Board of
his need to step down from the Group in March 2022, in order to
focus on his health.
The Board is pleased to announce that Richard Monaghan will
succeed Paul in the role of CFO. Richard will join In The Style in
mid-March 2022.
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.
ENDS
Enquiries
In The Style Group plc
Jim Sharp, Non-Executive Chairman Via Hudson Sandler
Sam Perkins, CEO
Paul Masters, CFO & COO
Liberum Capital Limited (Nomad
and Broker)
Clayton Bush
Scott Mathieson
Ed Thomas
Miquela Bezuidenhoudt +44 (0)20 3100 2000
Hudson Sandler
Alex Brennan +44 (0)20 7796 4133
Lucy Wollam inthestyle@hudsonsandler.com
Jake Brown
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 15 influencers,
including Stacey Solomon, Dani Dyer, Jacqueline Jossa and Billie
Faiers. Together they enjoy a combined global social media reach of
almost 30m followers.
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END
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January 19, 2022 02:00 ET (07:00 GMT)
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