In The Style considers sale; swings to interim loss
By Michele Maatouk
Date: Thursday 08 Dec 2022
(Sharecast News) - Womenswear brand In The Style said on Thursday that it was launching a strategic review, which could include a possible sale of the company, as it announced the departure of its chief executive and a swing to an interim loss.
The company said there had been "limited liquidity" for shareholders for some time and that the current market capitalisation does not properly reflect its underlying growth potential, "which may be better realised under an alternative ownership structure".
As a result, it has appointed Lincoln International to assist in conducting a strategic review, which may or may not result in a sale of the business. In The Style said it is not in talks with any potential suitors and is not in receipt of any approach with regard to a possible offer.
The company also announced that chief executive Sam Perkins plans to step down at the end of the year, with founder Adam Frisby set to return to the role on an interim basis.
In an update for the six months to 30 September, the company said it swung to a pre-tax loss of £3.1m from a profit of £0.9m in the same period a year earlier as revenue fell 11% to £26.6m. In the Style said consumer sentiment and the appetite to spend on discretionary items had been hit by inflation and the uncertain macroeconomic outlook.
Adam Frisby said: "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."
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