Influencer fashion brand In The Style is expecting "strong revenue growth" for its current financial year after a "positive sales performance" during the Christmas period, but has issued a warning over its profits.
The Salford-headquartered company is anticipating reporting a revenue of between £55m and £57m for the 12 months to the end of March 2020, in line with market expectations.
However, the business added that as a result of "supply chain constraint issues", its board is now expecting to report an adjusted EBITDA margin of between 1% and 2%.
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In a statement issued to the London Stock Exchange, the firm said: "The industry-wide global supply chain constraints continue to result in additional cost pressures as well as extended transit times.
"Less predictable transit times have sporadically impacted the group's launch timetable and resulted in shorter sales periods for some ranges.
"Careful management and flexibility in the group's supply chain has ensured that this did not impact overall sales figures during the period.
"However, this has led to an increased level of discounting to clear some ranges ahead of subsequent launches and the group currently expects some launches scheduled for Q4 to fall into FY23, resulting in a smaller volume of full price sales launches in Q4."
In a separate announcement, In The Style confirmed its CEO and COO, Paul Masters, is to step down in March in order to focus on his health.
He will be succeeded as CFO by Richard Monaghan who is to join the company in mid-March.
Mr Monaghan is currently director of finance at Victorian Plumbing and has previously served as deputy CFO and group financial controller at Autotrader.
The operational aspects of Mr Masters' combined role will come under the responsibility of CEO Sam Perkins.
Mr Perkins said: "The group has continued its excellent growth to achieve a strong sales performance during the important golden quarter.
"This outcome was achieved despite the well-documented uncertainties facing both consumers and retailers during the period and is testament to the appeal of the In The Style brand, continued positive momentum across several key customer metrics, and the success of our recent influencer collaborations.
"I'm very excited to have now joined In The Style. Underpinned by the strength of the group's differentiated business model and strong brand as well as the important investments that have been made in ITS's infrastructure, technology and team, we have so many exciting long-term growth opportunities to go for.
"We have a strong pipeline of new partnerships and collection launches, and I am looking forward to working closely with our excellent team to achieve our objectives."
