// In The Style sales dropped 22% in the three months to 31 December forcing the retailer widen its losses
// The group now expect to report an adjusted EBITA loss of between £4.25m and £4.75m
In The Style sales plummeted 22% over the golden quarter, forcing the retailer to widen its losses projection for the financial year.
The online retailer blamed high levels of markdowns and disruption to delivery for the “difficult” trading environment in December.
Direct-to-consumer sales dropped 13% and gross margins fell below the group’s expectations.
As a result, the group, which made a £3.1m loss in its first half, expects to make an adjusted EBITDA loss of between £4.25m and £4.75m for the year.
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Despite the sharp drop in sales, the retailer closed the golden quarter with stock of £3.2m down from last year’s £3.6m.
In The Style 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.”
In December, the retailer appointed Lincoln International to assist with a strategic review which may or may not result in the sale of the company or some of its assets.
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