In The Style, the fashion e-tailer, faced significant challenges nearly a year ago, prompting a strategic buyout by private equity firm Baaj Capital. The recently disclosed accounts for the year ending March shed light on the hurdles and advancements that defined the 12 months leading up to the pivotal acquisition.
While navigating a demanding market environment, In The Style asserts its achievement of «significant advancements in successfully executing crucial operational and strategic initiatives.» Reported revenue reached £46 million, reflecting a decrease from the previous year’s £57.3 million but an improvement from the £44.7 million two years prior.
The year-on-year decline in revenue was 19.8%, with a 2.9% increase on a two-year basis. Adjusted EBITDA recorded a loss of £4.3 million, in contrast to the £0.5 million profit in the preceding 12 months, and the net loss widened to £7.7 million from the previous year’s £1.5 million loss.
Direct-to-consumer revenue witnessed an 11% overall decline year on year to £40 million but showed a 10% increase on a two-year basis. The second-half plunge, attributed to the UK’s cost-of-living crisis, contributed to the industry’s challenges.
In The Style highlighted positive trends in key customer metrics, including a 0.1% increase in conversion and an 8% rise in average selling price per unit. The company sustained momentum in optimizing its influencer-based business model, launching over 140 collaborations and introducing more than 2,500 new products.
Collaborations featured influencers like Stacey Solomon, Jack Jossa, Perrie Sian, Carys Whittaker, Yasmin Devonport, and Georgia Louise. The Deborah James charity collection contributed to total charitable donations of £1.9 million.
The company emphasized «significant progress» in expanding its own-brand proposition, notably the FITS wardrobe staples launched in August 2022, contributing £2.8 million to the year’s revenue.
On the wholesale front, challenges, including excess stock, led to a substantial 52% decrease in wholesale revenues to £6 million. Wholesale accounted for 13% of total revenue compared to 22% in the previous year.
International sales remained modest at £3.2 million, presenting a growth opportunity for In The Style in the coming years.
Despite challenges, the company improved its gross margin by 131 basis points to 45.2%, citing cost management, agility in product sourcing, strategic retail pricing, and promotional spend optimization. Operational progress includes the opening of the Heywood site in August 2022, enhancing operational efficiencies and enabling in-house returns processing.
