In The Style warns over widening losses
By Michele Maatouk
Date: Friday 20 Jan 2023
(Sharecast News) - Fashion brand In The Style warned on Friday of widening losses as it reported a drop in sales, with the cost-of-living crisis denting consumer demand.
In an update for the three months to the end of December 2022, the company said the trading environment in December had been "challenging".
"This reflected high levels of markdown activity across the market, disruption to delivery services and the impact of cost-of-living pressures on our customers," it said.
Total revenue fell 22% on the same period a year earlier, with direct-to-consumer revenue down 13% and gross margin lower than it expected.
The retailer now expects revenue for the full year to be around £46m, and for a group adjusted EBITDA loss of between £4.25m and £4.75m.
Chief executive Adam Frisby said: "Following an encouraging performance in November and throughout the important Black Friday trading period, the trading environment in December was more difficult.
"Despite these challenges, we are encouraged by the positive customer reaction to FITS, our own brand range, which provides an exciting opportunity for us to further leverage the strengths of our influencer collaboration model."
The shares ended down 31% at 7.80p.
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