Online women’s fashion brand In The Style has warned the ongoing HGV crisis will hit its profits over the coming months as the demand for its products increases.
The Salford-headquartered listed company said it “has not been immune to the impact of the widely-documented freight and supply chain disruption” during recent months and that it has “sought to utilise the most efficient channels wherever possible” to ship products.
The business, which floated earlier this year, added that increased freight costs and disruption to the timing of shipments are expected to remain for at least the remainder of the current financial year which, in combination with the increased returns rate in the period, will impact the group’s profitability.
However, In The Style added that despite “this near-to-medium-term industry-wide disruption”, the company “remains in very well positioned to continue its strong growth trajectory and deliver its exciting long-term potential”.
The update comes as part of a trading update for the period from April to August 2021 ahead of the firm’s AGM today.
In the statement issued to AIM, In The Style said it has continued to “deliver strong sales growth” with group revenue during the period up 45% year on year and e-commerce gross order value almost 50% ahead.
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The business said its performance has been driven by the increasing profile and awareness of In The Style’s differentiated brand, the continued expansion of the group’s influencer collaboration model including the launch of nine new partnerships during the period and increased customer demand reflecting the return of social events during the summer.
The update comes after the company announced it had switched its HQ to a large modern office building in Salford.
Chief executive and founder Adam Frisby said: “We are pleased with the strong sales momentum achieved during the financial year to date.
“This momentum has been supported by increasing consumer awareness of In The Style and our clear brand mission to empower customers to be brave, embrace body confidence and, most of all, love themselves for who they are.
“Central to our growth is our differentiated influencer collaboration model that creates strong customer connections, drives efficient customer acquisition, and gives us exposure to a broad range of customers.
“During the period we continued to add exciting new influencer partnerships as well as launching a number of successful collections.
“We continue to invest in our team and infrastructure to support our long-term growth, and despite the widely-publicised external headwinds expected to continue to impact across the retail industry over the coming months, we remain very well positioned to continue to grow In The Style and achieve the brand’s exciting potential.”