ITS.L Regulatory News (ITS)

The information contained within this announcement is deemed by the Group to constitute inside information as stipulated under the Market Abuse Regulation (EU) No. 596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018.

20 January 2023

In The Style Group plc

("In The Style", the "Company" or the "Group")

Trading update for the three months to 31 December 2022

In The Style, the disruptive digital womenswear fashion brand with an innovative influencer collaboration model, provides a trading update for the three months to 31 December 2022.

Financial and operational update

- Following an encouraging performance in November, the trading environment in December was challenging. 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.

- Total revenue for the quarter declined 22% on the prior year. Direct-to-consumer ("DTC") revenue declined by 13% and gross margin for the quarter was lower than our expectations. This is broadly in-line with several of the Group's peers.

- The Group has managed stock levels well through the peak trading months and closed the quarter with stock of £3.2 million (31 December 2021: £3.6 million).

- Cash at the end of December was £3.2 million with the Group's invoice discounting facility which would provide an additional £0.4 million of liquidity remaining undrawn.

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."

For media enquiries:

Please contact the team at Hudson Sandler on +44 (0)20 7796 4133 or email inthestyle@hudsonsandler.com.

In The Style Group plc Via Hudson Sandler

Jim Sharp, Chairman

Adam Frisby, Interim CEO

Rich Monaghan, CFO

Hudson Sandler +44 (0)20 7796 4133

Alex Brennan inthestyle@hudsonsandler.com

Ben Wilson

Liberum Capital Limited (Nomad and Broker) +44 (0)20 3100 2000

Clayton Bush

Scott Mathieson

Miquela Bezuidenhoudt

Lincoln International LLP (Financial Advisor) +44 (0)20 7022 9880

Harry Kalmanowicz

Julian Tunnicliffe

About In The Style

In The Style is a disruptive digital womenswear fashion brand with an innovative social media influencer collaboration model. Founded in 2013 by entrepreneur Adam Frisby, the brand champions inclusivity, body positivity and real beauty.

The brand's innovative and highly adaptable influencer collaboration model, which sees it work with influencers on a long-term basis to collaboratively design, develop and promote branded collections, differentiates it from competitors. In The Style currently partners with a stable of 25+ influencers, including Jac Jossa, Stacey Solomon and Perrie Sian. Together they enjoy a combined global social media reach of over 30m followers.

For more information, please visit https://corporate.inthestyle.com/about/