In The Style Group PLC (AIM:ITS) slumped to a loss in its first full year as a public company and warned that another is lossmaking year is likely as revenue will be broadly flat in the current year.
The online womenswear retailer reported a pre-tax loss of £1.5mln for the year ended March 31, 2022, compared to a profit of £0.1mln in 2021. Underlying earnings (EBITDA) it said were down 85% to £0.55mln.
It predicted the year to March 2023 will see a £2.0mln adjusted EBITDA loss for fiscal 2023 given the "very uncertain market conditions".
Revenue is expected to be "broadly flat" next year, while revenue from wholesale channels are expected to decline at a double-digit rate, though direct-to-consumer (DTC) revenue are anticipated to grow at mid-single digit rates.
For the past year, revenue rose 28% higher at £57mln, and gross profit was 22% higher at £25mln.
The company said trading through 2023 first quarter has been "robust in a challenging trading environment" with the firm launching 44 ranges in collaboration with 18 influencers.
"I am pleased to report that in our first full year as a public company In The Style has delivered further strong revenue growth, representing almost +200% on a two-year basis," said chief executive Sam Perkins.
"This year is expected to be a challenging one for consumers and retailers. We are taking actions to respond including prudent cost control, cash management and executing against our refined growth strategy."
The shares tumbled 35% to 48.1p on Tuesday morning.