RE: 10p+ end of close3 Feb 2023 09:01
Current outlook
- We now expect revenue for the full year to be in the region of £46 million reflecting market-wide cost-of-living pressures on consumer demand, higher levels of markdowns and a reduction in wholesale demand.
- As a result of lower than anticipated revenue and gross margins, it is now expected that the Group will report an Adjusted EBITDA loss of between £4.25 million and £4.75 million for the year.
- The Group will continue to focus on cash management and liquidity.
Ongoing strategic review
On 8 December 2022 the Company announced that it was to conduct a strategic review of the Group's business as a whole (the "Strategic Review") and that it had appointed Lincoln International to assist with the process. The Strategic Review is ongoing and, as previously announced, may or may not result in a sale of the Company or some or all of the Group's business or assets. A further update will be made in due course.
Adam Frisby, Interim CEO, commented: "Following an encouraging performance in November and throughout the important Black Friday trading Period, the trading environment in December was more difficult. This reflected high levels of markdown activity across the market, disruption to delivery services, and the impact of cost-of-living pressures on our customers.
Despite these challenges, we are encouraged by the positive customer reaction to FITS, our own brand range, which provides an exciting opportunity for us to further leverage the strengths of our influencer collaboration model.
We are firmly focused on launching exciting, unique and inclusive new collections for our customers in collaboration with our influencer partners as well as tightly managing stock, costs, and cash. I remain absolutely confident in the fundamental strengths of the In The Style brand as well as our differentiated model."