In The Style has reported soaring sales but warned it expects its profits to take a hit from the supply chain issues plaguing the UK.
The Manchester-based womenswear e-tailer said Friday that increased freight costs, disruption to the timing of shipments, and an increased returns rate will impact its profitability. It said the issues will likely last until the end of its financial year in March.
Shares of the company were down more than 14 percent following the news.
CEO and founder Adam Frisby said: “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.”
The warning came as the company reported a 45 percent year-on-year increase in group revenue in the period from April to August, while e-commerce gross order value was up almost 50 percent.
Sales surge at In The Style
The retailer said its proprietary app also continued to deliver strong levels of consumer engagement, with sales through the app increasing to represent 62 percent of total e-commerce sales compared to 53 percent a year earlier.
The group’s wholesale sales jumped by over 200 percent in the period on the back of new partnerships, including one with Asda which saw the brand launch in 100 of the British supermarket’s stores.
In The Style has been growing rapidly in recent years and in March launched its IPO which raised 11 million pounds in gross proceeds.
“We are pleased with the strong sales momentum achieved during the financial year to date,” Frisby said.
“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.”