In The Style Group PLC (AIM:ITS) said it is making “solid” progress against its long-term growth strategy, including the launch of its own-brand collection and the move to a larger warehouse.
The update, issued ahead of today’s AGM, follows a slide into the red in the year to March 2022 for the online womenswear retailer. Alongside its full-year earnings release in July, the company forecast “broadly flat” revenue for the current year amidst uncertain market conditions.
In today’s statement, In The Style announced “significant” progress against several of its strategic priorities.
The company has moved to a new, larger 84,000 sq. ft. warehouse, which is now fully operational. The move is expected to provide benefits to the group's distribution costs.
In addition, it has launched 'FITS', a collection of own-brand wardrobe staples. The level of gross order value generated on the day of launch was one of the largest of the year so far, it noted.
"As has been widely reported, the trading environment is a challenging one for both consumers and retailers,” commented Sam Perkins, CEO of In The Style.
“The launch model and our position as a pure-play online retailer allows us to respond quickly to changing consumer behaviour, whilst not losing sight of achieving In The Style's long-term potential as one of the UK's most exciting fashion brands."
The company also said it has made good progress in optimising stock buys, which is expected to benefit the level of gross margin generated by the group from next month.
It added that it has completed a restructuring of its marketing, technology and product departments to increase operating efficiencies.
Net cash at 21 September 2022 was £4.3mln, following investment and exceptional items of £0.6mln as part of the warehouse move, in line with expectations.