In the Style says it is making “solid progress” in its strategy to grow sales more profitably. The social influencer-driven retailer says its pureplay status means that it is well-placed to respond quickly to changing customer demand in a challenging economy.
In July the retailer, ranked Top150 in RXUK Top500 research, reported full-year sales growth but a pre-tax loss as costs rose. Now it says it is reengineering its model in order to manage cash and boost profitability. The business, which bills itself as a fashion disruptor, operates through launches of clothing ranges in collaboration with social media influencers.
In an AGM trading statement today, In the Style says its actions include moving its operations to a larger, 84,000 sq ft warehouse. It now expects the new site to give it capacity for future growth, while reducing its distribution costs per unit.
It has launched a collection of own-brand wardrobe staples, FITS, and says that the launch gave it one of the largest levels of launch day orders so far this year. The brand, it says, will give it extra ways to reach its customers and boost sales outside of its usual influencer-led launch cycle.
And it has focused on how it buys stock, with the aim of increasing the proportion of full price sales, while also restructuring its marketing, technology and product departments in order to achieve operating efficiencies from October 2022. As of September 21 it had £4.3 m in cash, following one-off costs of £0.6m related to the warehouse move. Its invoice discounting facility, which makes £0.8m available, is as yet drawn.
Sam Perkins, chief executive of In The Style, says: “We have made solid progress against the group’s refined long-term growth strategy outlined at our FY22 results in July. Notable highlights have included the launch of our own-brand collection called FITS to a very encouraging customer reaction, as well as several important operational milestones including the move to a more efficient and scalable warehouse.
“As has been widely reported, the trading environment is a challenging one for both consumers and retailers. The launch model and our position as a pure-play online retailer allows us to respond quickly to changing consumer behaviour, whilst not losing sight of achieving In The Style’s long-term potential as one of the UK’s most exciting fashion brands.”
In the Style is ranked Top250 in RXUK Top500 research.