In The Style Christmas sales soar but supply chain disruption to hit margins

In The Style's Christmas sales rose but margins will be hit in fourth quarter
In The Style's Christmas sales rose but margins will be hit in fourth quarter
// In The Style net sales jumped 21.5% over Christmas as demand was strong for partywear and festive pyjamas
// The retailer warned that supply chain disruption has led to some new collection launches moving into its next financial year which would hit full-price sales

In The Style’s sales soared over Christmas but warned that supply chain disruption will hit margins in its fourth quarter.

The etailer, which listed on the stock market last year, posted a 21.5% net sales rise to £11.2m, a 225.9% jump on two years ago, in the eight weeks to 31 December.

Although it expects sales for its financial year to 31 March to be in line with market expectations of between £55m to £57m, it warned that EBITDA margin will now sit between 1% and 2% due to supply chain constraints forcing some collection launches to move into its next financial year.

Despite the supply issues, In The Style said demand for products such as partywear and festive family pyjamas was strong as its focus on influencer partnerships paid off.

It had several well-received launches with new influencers over the period alongside “very successful” collection launches with existing influencer partners, which include ex-Eastenders actress Jacqueline Jossa and Instagram star Lorna Luxe.

Gross order value, which does not take in returns but provides an indicator for underlying demand, increased 41.4% to £15.2m, or 178.4%, over the eight weeks to 31 December.

The online fashion retailer said growth was driven by its own direct-to-consumer (DTC) ecommerce. DTC sales post-customer returns advanced 34.5% to £9.1m with sales through In The Style’s app rocketing 72.3% year on year. App sales made up more than two thirds (67.1%) of sales over the Christmas period.

READ MORE: Christmas trading tracker: how retailers performed over the golden quarter

In The Style chief executive Sam Perkins said: “The group has continued its excellent growth to achieve a strong sales performance during the important golden quarter.

“This outcome was achieved despite the well-documented uncertainties facing both consumers and retailers during the period and is testament to the appeal of the In The Style brand, continued positive momentum across several key customer metrics, and the success of our recent influencer collaborations.”

Perkins, who joined In The Style from The Very Group this week, said:  “I’m very excited to have now joined In The Style. Underpinned by the strength of the Group’s differentiated business model and strong brand as well as the important investments that have been made in ITS’s infrastructure, technology and team, we have so many exciting long-term growth opportunities to go for.

“We have a strong pipeline of new partnerships and collection launches, and I am looking forward to working closely with our excellent team to achieve our objectives.”

In The Style also reported that its chief financial officer and chief operating officer Paul Masters intends to step down in March to focus on his health. Victorian Plumbing director of finance Richard Monaghan will replace Masters as chief financial officer.

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