British fashion e-tailer In The Style has reported strong revenue growth in the first half of the year, but saw its profit take a hit from global supply chain issues.
In the six months to September 30, revenue at the company increased 38.8 percent to 29.8 million pounds compared to a year earlier, and by 245.5 percent compared to two years ago.
Founded by Adam Frisby in Manchester in 2013, In The Style has grown rapidly in recent years, fueled by consumers’ increasing shift to online shopping which has only accelerated during the pandemic.
Breaking the results down by channel, direct-to-consumer revenue increased 23.4 percent to 23 million pounds compared to a year earlier, while wholesale revenue increased 138.7 percent to 6.9 million pounds.
But the company said its profit took a hit from industry-wide supply chain disruption.
EBITDA dropped to 1.2 million pounds from 2.5 million pounds a year earlier, while profit before tax fell to 0.9 million pounds from 1.8 million pounds.
The company also saw higher return rates versus the prior year, “in part reflecting sales growth of the group's more inclusive size ranges, which is being addressed through increased investment in product and garment technology and fitting”.
Upbeat on current trading
Commenting on the results in a statement, founder Adam Frisby said: “Whilst the global supply chain and freight disruption that has impacted across the industry is expected to persist for at least the remainder of the year, we are pleased to report that the strong sales performance achieved during the first half has continued through Black Friday and into the festive trading period so far.”
The company said sales to wholesale partners have been lower than the prior year, which it said reflected the phasing of orders. However, it said it remains confident it will make “continued progress” through the channel in the second half.
Frisby continued: “With this momentum, coupled with recent investment into our scaled-up operational and senior management teams, we look forward to continuing In The Style's exciting growth and achieving our long-term vision for the brand.”
In The Style announced in November that Frisby would be stepping down as CEO to take on the role of chief brand officer.
Frisby, who led the company through its successful IPO earlier this year, will hand the top job over to Sam Perkins from January 17.
Perkins joins from The Very Group where he has been managing director of the group's retail division since 2018. He has also held various senior roles at big-name retailers like Tesco, Nestle and PepsiCo.