In The Style Group plc has announced its interim results for the six months ended 30 September 2022 (“H1 2023”). In the first half of FY23, the first H1 absent of any pandemic related impact since H1 2020, the Group consolidated the revenue gains made over the last three years through its direct-to-consumer channel.
It had focused on cost control including restructuring its marketing and product departments to increase the effectiveness of the teams whilst removing cost and had also relocated to a larger 84,000 sq. ft. warehouse to achieve operational efficiencies and capacity for future growth. The business had also made progress in optimising stock buys, in line with its strategic focus on increasing the proportion of full-price sales and reducing the level of overall discount.
A concession model had been agreed with a digital partner and it had also mutually agreed to cease its in-store trial partnership which ran for the duration of FY22
New customers totalled 293,000 (H1 2022: 243,000) with its active customer base up by 17 per cent to 523,000 (H1 2022: 446,000) and it had processed 841,000 orders (H1 2022: 826,000). Average order value reduced by 5 per cent to £49.89 (H1 2022: £52.75) and frequency was down by 13 per cent to 1.61 purchases over the six month period.
Group revenue reduced by 11 per cent year-on-year to £26.6m (H1 2022: £29.8m) but remained 208 per cent up on H1 2020 as the step change made in market share through the pandemic period was largely maintained. Direct-to-consumer (“DTC”) remained broadly flat at £22.8m (H1 2022: £23.0m). Wholesale revenue reduced by 45 per cent to £3.7m (H1 2022: £6.9m) in part due to the mutually agreed cessation of the in-store trial with one partner
The Board confirmed that its expectation for full year Adjusted EBITDA remains unchanged.
It said that consumer sentiment remains uncertain and now expects DTC revenue for the full year to be broadly similar to that achieved in FY22, with wholesale likely to continue to be a challenge.
Sam Perkins has informed the Board of his intention to step down as Group CEO. He will leave In The Style on 31 December 2022. During Sam’s tenure as CEO, the Group has developed and begun to implement several strategic initiatives to support the Group’s future profitable growth.
In The Style’s Founder, Adam Frisby, will return to the role of CEO on an interim basis. Adam led the Group as CEO for seven years until January 2022. Since then, Adam has held the role of Chief Brand Officer, with responsibility for developing the Group’s influencer partnerships and the brand’s creative direction.
As announced on 8 December 2022, the Board believes that there has been limited liquidity for In The Style’s shareholders for some time and that the current market capitalisation of the Company does not properly reflect the underlying growth potential of the Group which may be better realised under an alternative ownership structure. The Board has, therefore, decided to conduct a strategic review of the Group’s business as a whole (the “Strategic Review”) and has appointed Lincoln International to assist with this process. The outcome of the Strategic Review may or may not result in a sale of the Company or some or all of the Group’s business and assets. The Company is not in talks with any potential offeror and is not in receipt of any approach with regard to a possible offer.
Adam Frisby, Founder and Chief Brand Officer of In The Style Group plc said: “We have made important progress against our strategic priorities during the first six months of the year as we look to evolve our business and re-engineer our economic model. Highlights have included moving our warehouse operations, restructuring the way in which our teams work and, most encouragingly, launching FITS to a very positive customer reception.
“Our DTC channel delivered a robust performance in the current economic environment and the Group’s core operational metrics have remained solid, with gains in engagement levels and the customer base that were made through the pandemic period being maintained which provides a strong platform for future growth.
“We expect trading conditions to be challenging in the second -half. We will continue to focus on cost control and profitability, and we look forward to delivering further strategic progress over the remainder of the financial year. We remain very excited about the long-term potential of the Group .”
Share