19th Jul 2022 10:55
(Alliance News) - In The Style Group PLC on Tuesday reported a loss in its recently ended financial year, while shares have plummeted after it unveiled new underwhelming guidance for the year ahead.
Shares in the Manchester-based online womenswear fashion retailer plunged 35% in London on Tuesday morning to 48.10 pence.
In the year to March 31, the firm snapped to a pretax loss of GBP1.5 million versus a GBP125,000 profit the year prior.
Underlying administrative expenses rose to GBP14.6 million from GBP9.7 million. In The Style noted marketing costs increased 42%, which it attributed to "influencer commissions on collaborations". People costs grew 52% and its headcount increased 42% to 122.
Despite the profit drop, annual revenue improved to GBP57.3 million from GBP44.7 million, as direct-to-consumer revenue rose to GBP44.7 million from GBP36.4 million. Wholesale revenue increased to GBP12.6 million from GBP8.3 million.
Total orders were up 13% to 1.52 million from 1.34 million, with the average order value up 21% to GBP52.00 from GBP42.85.
"I am pleased to report that in our first full year as a public company In The Style has delivered further strong revenue growth, representing almost 200% on a two-year basis. This has been supported by encouraging improvements across all our key customer and brand metrics," Chief Executive Sam Perkins said.
In the first quarter of financial 2023, In The Style said its performance has been "robust", with DTC revenue up 12%. Total revenue, however, was "broadly flat", as wholesale revenue slipped.
Perkins added: "This year is expected to be a challenging one for consumers and retailers. We are taking actions to respond including prudent cost control, cash management and executing against our refined growth strategy."
For financial 2023 as a whole, revenue is guided to be broadly flat. DTC revenue is guided to grow at mid-single digit rates, while wholesale revenue is expected to decline at a double-digit rate.
Stockbroker Davy noted this new guidance is significantly below the 15% total revenue rise previously expected.
By Paul McGowan; [email protected]
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