Pre-acquisition In The Style tackled declining revenues

Last year, In The Style was marginally rescued from its financial troubles through an acquisition by Baaj Capital, which had agreed to take on the fast fashion retailer’s operations for a sum of 1.2 million pounds.

At the time, the British company, founded by the recently exited Adam Frisby, was undergoing a strategic review amid reports of a challenging period that led to the lowering of its profit guidance.

Such turbulence has now been reflected in In The Style’s latest financial report, filed with Companies House, for the year to March 2023, the month in which it was ultimately taken over by Baaj.

During this time, the company said that it had delivered a revenue of 46 million pounds, dropping from the previous year’s 57.3 million pounds and representing a 19.8 percent year-on-year decline. Its adjusted EBITDA, meanwhile, fell in-line with its latest trading statement, amounting to a 4.3 million pound loss.

Such figures were largely impacted by an 11 percent drop in direct-to-consumer sales, hitting 40 million pounds, with the second half of the year seeing a notable 21 percent decline due to what it said was “well documented industry peer performance” and the impact of the cost-of-living crisis in the UK.

Wholesale also took a hit, with revenues dipping 52 percent to six million pounds, down from the prior 12.6 million pounds, in light of the “prevalent issue of excess inventory”. The division represented 13 percent of total revenue.

The business further achieved a gross margin of 45.2 percent, representing a 131-basis point improvement YoY thanks to strategic retail pricing, promotional spend optimisation and agility in product sourcing.