Online women’s fashion retailer In The Style (LON: ITS) shares went to an immediate premium when it joined AIM in March 2021, but since then it has disappointed and, at 8p, it is 96% below the 200p placing price following the latest trading statement.
In December, price cutting by rivals and difficulties in delivering orders hit trading. Revenues in the quarter to December 2022 fell by 22%. Direct-to-consumer revenues were 13% lower. Many other online fashion retailers have also endured significant reductions in revenues in the period.
There was £3.2m in cash at the end of 2022, down from £4.4m at the end of November, and an undrawn invoice discounting facility of £400,000. Stock levels are lower than ta the end of 2021.
Full year revenues are expected to be £46m, which is not much more than the £44.7m generated in the year before flotation. In July 2021, Liberum forecast 2022-23 revenues of £66.6m and EBITDA of £5.6m. The EBITDA outcome is likely to be a loss of between £4.25m and £4.75m. That is a swing of around £10m compared with forecasts 18 months before.
On 8 December, In The Style launched a strategic review and that continues. This could lead to the business being sold. Sam Perkins stepped down as chief executive at the end of 2022 and founder Adam Frisby returned to the role.
